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The actual sales of an item at a retail store during the past six months are shown below: MONTH ACTUAL SALES (number of units sold) (show work)
Six months ago 344
Five months ago 340
Four months ago 352
Three months ago 350
Two months ago 356
One month ago 360
THIS MONTH ACTUAL SALES NOT KNOWN
Determine the sales forecast for THIS MONTH using each of the following methods:
a. A 4-month moving average.
b. A 3-month weighted moving average using weights of 15, 10, and 5 for one month ago, two months ago, and three months ago, respectively. (Hint: the heavier weights are applied to the more recent time periods.)
c. Exponential smoothing using the following: smoothing constant, α = 0.35 and the sales forecast for three months ago = 349 units.
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