Question

Sales of air conditioners have grown consistently over the years and the follow represents sales:

Year           Sales
1                  520
2                  550
3 600
4                  610
5                  680
6                  710

7 810

8 820

9 900

1) The sales manager had predicted, before the business started, that year 1 sales would be 465 air conditioners. Using exponential smoothing with an alpha of .30, develop a forecast.
2) Using smoothing constants of .6 and .9, develop forecasts for the sales of air conditioners.
3) What effect did the smoothing constant have on the forecast for air conditioners. Which smoothing constant gives the most accurate forecast?
4) Forecast year 7 using linear regression and the regression equation.

5) Evaluate the following data and present a solution with two different and effective forecasting methods.

Answer 1