Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Oxford Mixer Inc. sells can openers. Its monthly sales for a seven-month period were as follow..

Oxford Mixer Inc. sells can openers. Its monthly sales for a seven-month period were as follow..

1. Oxford Mixer Inc. sells can openers. Its monthly sales for a seven-month period were as follows: Sales Month (Unit 1000) Feb 19 18 March April 15 20 May Tune 18 223 July August 18 We made forecasted September sales volume using each of the following: (1) Naive Approach (2) A two-month moving average (3) A five-month moving average (4) A weighted average using 0.60 for August, 0.30 for July, and 0.10 for June (5) Exponential smoothing with a smoothing constant equal to 0.40, assuming February forecast of 19. Please see the attached EXCEL file for the results of forecasting. Which method seems most appropriate and least appropriate? Why? (Please compute only ONE forecasting error, Mean Absolute Deviation (MAD) and compare one another.)

1. Oxford Mixer Inc. sells can openers. Its monthly sales for a seven-month period were as follows: Sales Month (Unit 1000) Feb 19 18 March April 15 20 May Tune 18 223 July August 18 We made forecasted September sales volume using each of the following: (1) Naive Approach (2) A two-month moving average (3) A five-month moving average (4) A weighted average using 0.60 for August, 0.30 for July, and 0.10 for June (5) Exponential smoothing with a smoothing constant equal to 0.40, assuming February forecast of 19. Please see the attached EXCEL file for the results of forecasting. Which method seems most appropriate and least appropriate? Why? (Please compute only ONE forecasting error, Mean Absolute Deviation (MAD) and compare one another.)

 

Jul 27 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions