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Storrs Cycles has just started selling the new Cyclone mountain bike, with monthly sales as shown in the table. First, co-owner Bob Day wants to forecast by exponential smoothing by initial setting February's forecast equal to January's sales with a= .1. Co-owner Sherry Snyder wants to use a three-period moving. January sales-400, Bob- 0, Sherry, Bob's Error, Sherry Error. February Sales-380, Bob-400, Sherry, Bob's Error, Sherry's Error. March sales-410, Bob, Sherry, Bob's Error, Sherry's Error. April sales-375, Bob, Sherry, Bob's Error, Sherry's Error. May sales-, Bob-, Sherry-, Bob's Error-, Sherry's-. a) Is there a strong linear trend in sales time? b) Fill in the table with Bob and Sherry each forecast for May and the earlier month's as relevant. c) Assume that May's actual sales figure turns out to be 405. Complete the table's columns and then calculate the mean absolute deviation for both Bob's and Sherry's methods. d) Based on these calculations, which method seems more accurate?
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