Forecasting
Annual sales of product from XYZ corporation have been recordedas follows:
Year | Sales (000 units) | | Year | Sales (000 units) |
1 | 220 | | 8 | 360 |
2 | 245 | | 9 | 400 |
3 | 280 | | 10 | 380 |
4 | 275 | | 11 | 420 |
5 | 300 | | 12 | 450 |
6 | 310 | | 13 | 460 |
7 | 350 | | 14 | 475 |
Management is interested in implementing a new forecastingsystem and investigating the following forecasting methods aspossibilities:
Simple moving average, Weighted moving average, SimpleExponential Smoothing, Regression.
a. Choosetwo of these methods and calculate forecasts forYear 15
If you use Exponential Smoothing, begin with the assumption theForecast for Year 12 was 435 (choose your own alpha)
b. Present your forecastresults
c. Explain why each of your chosen methods isappropriate for the data and time frame given
That's all the information provided by the professor. I'llupdate the question if further conditions are given, but that's allI have so far.
