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Plot the monthly data on a sheet of graph paper

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Reference no: EM131408023

Ms. Winnie Lin's company sells computers. Monthly sales for a six-month period are as follows:

Jan 18,000

Feb 22,000

Mar 16,000

Apr 18,000

May 20,000

Jun 24,000

  • Plot the monthly data on a sheet of graph paper.
  • Compute the sales forecast for July using the following approaches:  1) a three-month moving average;  2) a weighted three month moving average using  .50 for June,  .30 for May, and .20 for April;  3) a liner trend equation; 4) exponential smoothing with a (smoothing constant) equal to .40, assuming a February forecast of 18,000.
  • Which method do you think is the least appropriate? Why?
  • Calculate the MAD for each of the four techniques in part b.  Which is the best? Why?

Reference no: EM131408023

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