The following data are monthly sales of jeans at a local department store. The buyer would...

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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

Answer & Explanation Solved by verified expert

3.6 Ratings (483 Votes)

Please refer below table highlighting relevant calculations Month Actual sales Forecast Nave method Absolute deviation Forecast 2 period moving average Absolute deviation Forecast Exponential smoothing Absolute deviation January 45 February 30 45 15 45 March 40 30 10 375 25 42 200 April 50 40 10 35 15 416 See Answer

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