Question

Suppose a company has the following sales for the last six months (January – June):

Month	Period	Sales
January	1	16
February	2	25
March	3	20
April	4	20
May	5	31
June	6	35
July	7	26
August	8	(a)

Use this information to answer the following 7 questions:

ques 1 given the information above

1.Use exponential smoothing (a= 0.10) to forecast the sales for August (to 2 decimals). What is the value?

2. Compute the MSE for the exponential smoothing method from the above question (to 2 decimals).

3.Use a 2-period moving average to forecast the sales for August (to 2 decimals). (i.e.find (a) using a 2-period moving average)

4. What is the mean square error (MSE) for the 2-period moving average from the previous question?

5. Which method do you prefer to forecast sales (to 2 decimals)? Why?

6.Using January through July values, develop a linear trend equation for this time series (to 4 decimals). Please write the equation in the proper form.

7.Using your answer from (7), what is the average change in sales per month for this company (to 2 decimals)?

Heyyyy i need extreme help this is one question asking various if that makes sense. andi can ask them separately because this is how they were given to support the information

Answer 1

1) and 2)

period	sales	forecast	error^2
1	16	16	0
2	25	16	81
3	20	16.9	9.61
4	20	17.21	7.78
5	31	17.49	182.55
6	35	18.84	261.14
7	26	20.46	30.73
8		21.01
		MSE	81.83

3) and 4)

period	sales	forecast	error^2
1	16
2	25
3	20	20.5	0.25
4	20	22.5	6.25
5	31	20	121
6	35	25.5	90.25
7	26	33	49
8		30.5
		MSE	53.35

5)

we prefer moving average as its MSE is lower