Forecast sales of jeans for March through June using the naive method, a two-per
ID: 3303094 • Letter: F
Question
Forecast sales of jeans for March through June using the naive method, a two-period moving average, and exponential smoothing with an = 0.2. (Round answers to 1 decimal place, e.g. 15.2.)
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Compute the MAD for each approach (Round answers to 1 decimal place, e.g. 15.2.)
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Using the two-period moving average method, make a forecast for the month of July.
Forecast sales of jeans for March through June using the naive method, a two-period moving average, and exponential smoothing with an = 0.2. (Round answers to 1 decimal place, e.g. 15.2.)
Month Sales Naïve Forecast 2-PeriodMoving
Average Exponential
Smoothing January 45 February 30 March 40 April 50 May 55 June 47
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Explanation / Answer
Month Sales Naïve Forecast Deviation Absolute Deviation January 45 February 30 March 40 30 10 10 April 50 40 10 10 May 55 50 5 5 June 47 55 -8 8 MAD 8.25 Month Sales 2-Period Moving Average Deviation Absolute Deviation January 45 February 30 March 40 (45+30)/2=37.5 2.5 2.5 April 50 (30+40)/2=35 15 15 May 55 (40+50)/2=45 10 10 June 47 (50+55)/2=52.5 -5.5 5.5 MAD 8.25 Month Sales Exponential Smoothing Deviation Absolute Deviation January 45 February 30 March 40 (0.2)(30)+(0.8)(30)=30 10 10 April 50 (0.2)(40)+(0.8)(30)=32 18 18 May 55 (0.2)(50)+(0.8)(32)=35.6 19.4 19.4 June 47 (0.2)(55)+(0.8)(35.6)=39.48 7.52 7.52 MAD 13.73 July (55+47)/2 51