The following data show the number of laptop computers sold each month at a retail store:
|
Month
|
Unit Sales
|
|
January
|
200
|
|
February
|
230
|
|
March
|
225
|
|
April
|
240
|
|
May
|
210
|
|
June
|
180
|
|
July
|
160
|
|
August
|
310
|
|
September
|
320
|
|
October
|
270
|
|
November
|
250
|
|
December
|
300
|
a. Assuming the estimated trend from May to June was 24 and the forecast for June was 190, use trend-adjusted exponential smoothing with a 5 0.3 and
b 5 0.2 to forecast sales for each of the seven following months: July, August, September, October, November, December, and January.
b. Use regression for the data from January to June to create a forecast for each month from July to the following January.
c. Compare the two sets of forecasts generated in parts a and b. Which forecast model produces a better MFE? MAD?