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

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a. Plot the monthly data on a sheet of graph paper.

b. Compute the sales forecast for July using the following approaches:

(1) a four-month moving average;

(2) a weighted three-month moving average using .50 for June, .30 for May and .20 for April;

(3) a linear trend equation

(4) exponential smoothing with α (smoothing constant) equal to .40, assuming a February forecast of 18,000

c. Which method do you think is the least appropriate? Why?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92650038

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