Question

A convenience store recently started to carry a new brand of soft drink. Management is interested in estimating future sales volume to determine whether it should continue to carry the new brand or replace it with another brand. The following table provides the number of cans sold per week. Use both the trend projection with regression and the exponential smoothing​ (let alpha α equals=0.4 with an initial forecast for week 1 of 586​) methods to forecast demand for week 13. Compare these methods by using the mean absolute deviation and mean absolute percent error performance criteria. Does your analysis suggest that sales are trending and if​ so, by how​ much?

Period   1   2   3   4   5   6   7   8   9   10   11   12
Sales   586   631   657   741   668   621   731   683   747   744   651   745

Obtain the trend projection with regression forecast.

The forecast for week 13 is 746. ​(Enter your response rounded to the nearest whole​ number.)

Specify the mean absolute deviation​ (MAD) and mean absolute percent error​ (MAPE). ​(Enter your responses rounded to two decimal​ places.)

MAD

MAPE

Answer 1