The following data are monthly sales of jeans at a localdepartment store. The buyer would like to forecast sales of jeansfor the next month, July.
(a) Forecast sales of jeans for March through June using thenaïve method, a two-period moving average, and exponentialsmoothing with an ? = 0.2. (Hint: Use naïve to start theexponential smoothing process.)
(b) Compare the forecasts using MAD and decide which is best.
(c) Using your method of choice, make a forecast for the month ofJuly.
| Month | Sales |
| January | 45 |
| February | 30 |
| March | 40 |
| April | 50 |
| May | 55 |
| June | 47 |
