I need help with the following questions, but I don\'t just want to be given the

Question

I need help with the following questions, but I don't just want to be given the answer, I need an explanation on how to figure it out! I am so confused and completely stuck!

National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows:

         
   

     
   

      
   

A linear trend equation.(Round your intermediate calculations and final answer to 2 decimal places.)

     
   

      
   

A five-month moving average. (Round your answer to 2 decimal places.)

      
   

      
   

Exponential smoothing with a smoothing constant equal to .40, assuming a March forecast of 17(000). (Round your intermediate calculations and final answer to 2 decimal places.)

      
   

     
   

      
   

      
   

A weighted average using .60 for August, .10 for July, and .30 for June. (Round your answer to 2 decimal places.)

       
   

  

Month Sales
(000)Units    Feb. 18   Mar. 18   Apr. 15   May. 23   Jun. 15   Jul. 21   Aug. 24

Explanation / Answer

1) Y(t)=24000+3000 (since august- july sales =3000)

=27000

2) moving average of feb+mar+apr+may+jun= 89/5= 17.8

moving average of mar+apr+may+jun+jul= 92/5= 18.4

moving average of apr+may+jun+jul + aug= 98/5= 19.6

so sept sales= (17.8+18.4+19.6)/3= 18.6

3)exponential smoothing formula: s(t)=a*x(t-1) + (1-a)*s(t-1) & s0=x0

so s0=18=x0, where x0,x1,x2...show the sales corresponding to the given months and s1,s2,s3...show the exponentially smoothened sales figures.

s1=0.4*18+(1-0.4)*18=18

s2=0.4*18+0.6*18 and so on... find the value of s7, this will give the value for sept sales.

4) naive approach takes the historical average of all the previous entries.

therefore, sales in sept= (18+18+15+23+15+21+24)/7= 19.14

5) weighted avg.:

(0.6*24+0.1*21+0.3*15)= 21

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