1. City Cycles has just started selling the new XYZ-10 mountain bike, and below are the monthly sales. Amit wants to forecast by exponential smoothing (setting February's forecast equal to January's sales) with alpha = 0.1;Barbara wants to use a 3-period moving average.;Sales Amit Barbara Amit error Barbara Error;January 400;February 380 400;March 410;April 375;May;1. a) Is there a strong linear trend in sales over time?;2. b) Fill in the table with what Amit and Barbara each forecast for May and the earlier months, as relevant.;3. c) Assume that May's figure turns out to be 405. Append the table with error columns then calculate MAD for both Amit's and Barbara's method. (16.11 and 19.17);4. d) Based on these calculations, which method seems more accurate?
Paper#28531 | Written in 18-Jul-2015Price : $34