Which model do you think is the best model for your business

Assignment Help Basic Statistics

Reference no: EM13827628

Problem-

The table below provides a list of sales figures for this past year for your mountain resort. You want to project a forecast for January of the following year. You want to select from 3 models to make your forecast: 1) a 3-month moving average; 2) a weighted moving average (you believe your weights should be 0.2, 0.3, & 0.5); and 3) an exponential smoothing model in which will use an a = 0.2. Your assumed forecast for January is $32,000.

a. Construct a table that shows each of these forecasts for the current year and provide the forecast for January of this coming year.

b. Using the data given, and your forecasts, which model do you think is the best model for your business?

Month	Previous year sale $
January	32,645
February	31,456
March	30,270
April	33,129
May	34,456
June	35,256
July	36,218
August	35,456
September	34,250
October	32,156
November	30,125
December	32,275
January

Additional information-

This problem related to Basic Statistics and it discuss about forecasting sales for a business using exponential smoothing model.

Reference no: EM13827628

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