Question

11-14 Highland Automotive wishes to forecast the number

of new cars that will be sold next week. The following

table summarizes the number of new cars sold

during each of the past 12 weeks: (PLEASE ANSWER BY USING EXCEL)

week	number sold
1	22
2	26
3	23
4	27
5	21
6	25
7	28
8	26
9	29
10	29
11	27
12	31

(a) Provide a forecast by using a 3-week weighted

moving average technique with weights 5, 3, and

1 (5 = most recent).

(b) Forecast sales by using an exponential smoothing

model with a = 0.45.

(c) Highland would like to forecast sales by using

linear trend analysis. What is the linear equation

that best fits the data?

(d) Which of the methods analyzed here would you

use? Explain your answer.

Answer 1

a)

Formula under each cell

b)

Formula of the above excel calc

c) Performed the regression analysis below for the linear trend in excel's data analysis tool pack

d)If we compare a b and c the least sum of squares of error is in the case of exponential smoothening.

Hence we will use exponential smoothening for forecasting

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