The sales of vacuum cleaners at Lowenthal’s Industrial Supply over the last thirteen months are given...

The sales of vacuum cleaners at Lowenthal’s Industrial Supply over the last thirteen months are given below.

Month	Sales	Month	Sales
1	12	8	14
2	14	9	17
3	16	10	12
4	10	11	14
5	15	12	16
6	17	13	11
7	11

a) Use a weighted moving average for three periods to forecast sales for next month. Use a weight of 3 for the most recent period, 2 for the middle period, and 1 for the third previous period. What is the forecasted number of vacuum sales for next month?

b) Use a weighted moving average for three periods to forecast sales for next month. Use a weight of 4 for the most recent period, 3 for the middle period and 2 for the third previous period. What is the forecasted number of vacuum sales for next month?

c) Which forecast of sales should Lowenthal use and why?

Solutions

Expert Solution

MAD = 2.73

MSE = 9.63

MAPE = 21.55%

MAD = 2.54

MSE = 8.45

MAPE = 20.04%

MSE part a > MSE part b

Part b forecast of sales should Lowenthal use

orchestra answered 1 year ago

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