National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a s

Question

National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows:

    

   

    

A linear trend equation.(Round your intermediate calculations and final answer to 2 decimal places.)

   

    

A five-month moving average. (Round your answer to 2 decimal places.)

    

    

Exponential smoothing with a smoothing constant equal to .20, assuming a March forecast of 16(000). (Round your intermediate forecast values and final answer to 2 decimal places)

    

   

    

    

A weighted average using .70 for August, .10 for July, and .20 for June. (Round your answer to 2 decimal places.)

     

National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows:

Explanation / Answer

Linear trend equation fitted :

Y = 1.178 X + 15.571

Prediction for Sep, X = 8,

Y = 25

The next three are done in the table :

Thus,

5 -month moving average forecast = 21 (which is the simple arithmetic mean od months from April to august

Naive forecast = 24 (which is just the previous month sales)

Exponential smoothing = (alpha)*(previous sales) + (1 - alpha)*(previous forecast)

Weighted moving average value = 0.7(24) + 0.1(25) + 0.2(16)

= 22.5

Hope this helps. Ask if you have any doubts

Month Sales Time (000)Units 1   Feb. 19 2   Mar. 18 3   Apr. 12 4   May. 28 5   Jun. 16 6   Jul. 25 7   Aug. 24 Sep

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