Which smoothing constant gives the most accurate forecast

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Reference no: EM13827340

Sales of Cool-Man air conditioners have grown steadily during the past 5 years:

Year Sales

1 440

2 465

3 520

4 573

5 586

6 ?

1. The sales manager had predicted, before the business started, that year 1’s sales would be 410 air conditioners.

Using exponential smoothing with a weights of a = 0.30, 0.60, and 0.90 develop forecasts for years 2 through 6.

2. What effect did the smoothing constant have on the forecasts for Cool-Man air conditioners?

3. Which smoothing constant gives the most accurate forecast?

4. Use a three-year moving average forecasting model to forecast the sales of Cool-Man air conditioners.

5. Use the trend projection method to develop a forecast for the sales of Cool-Man air conditioners.

6. Which of the five models you developed was the most accurate (best)?

Reference no: EM13827340

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