Reference no: EM132783769

Sales of Cool -Man air conditioners have grown steadily during the past 5 years as shown in Table 1. The sales manager had predicted, before business started, that year 1's sales would be 410 air conditioners.

YEAR------- SALES

1--------------450

2--------------495

3---------------518

4--------------563

5-------------584

6----------------?

(a) Using exponential smoothing with a weight of α = 0.30, develop forecasts for year 2 through 6.

(b) Using smoothing constants of 0.6 and 0.9, develop forecasts the sales of Cool-Man air conditioners.

(C) What effect did the smoothing constant have on the forecasts for Cool-Man air conditioners? Compare answer in (a) and (b), which smoothing constant gives the most accurate forecast?

(d) Use a three-year moving average forecasting model to forecast the sales of Cool-Man air conditioners.

(e) Using the Trend projection method, develop forecasting model for the sales of Cool- Man air conditioners.

(f) Refer to answer in (a), (c) and (d), which method that you would use to predict the sales of Cool-Man air conditioners?