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Different Methods for Forecasting Sales
Monthly sales for National Mixer, Inc. for a seven-month period were as follows:
Month (T) - Sales (1000 UNITS)Feb - 19Mar - 18Apr - 15May - 20Jun - 18Jul - 22Aug - 20
Forecast the sales volume for September using each of the following method:
a) 5-month moving average;
b) Weighted average, where the weights are - 0.60 (August), 0.30 (July), 0.10 (June)
c) Exponential smoothing with a smoothing constant equal to 0.20
d) Linear trend equation, Y = 16.86+0.5*T;
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