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Question: The following data show the number of laptop computers sold each month at a retail store:
a. Assuming the estimated trend from May to June was 2 4 and the forecast for June was 190, use trend-adjusted exponential smoothing with a = 0.3 and b = 0.2 to forecast sales for each of the seven following months: July, August, September, October, November, December, and January.
b. Use regression for the data from January to June to create a forecast for each month from July to the following January.
c. Compare the two sets of forecasts generated in parts a and b. Which forecast model produces a better MFE? MAD?
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