Which model do you think is the best model for your business

Reference no: EM13827628

Problem-

The table below provides a list of sales figures for this past year for your mountain resort. You want to project a forecast for January of the following year. You want to select from 3 models to make your forecast: 1) a 3-month moving average; 2) a weighted moving average (you believe your weights should be 0.2, 0.3, & 0.5); and 3) an exponential smoothing model in which will use an a = 0.2. Your assumed forecast for January is $32,000.

a. Construct a table that shows each of these forecasts for the current year and provide the forecast for January of this coming year.

b. Using the data given, and your forecasts, which model do you think is the best model for your business?

Month	Previous year sale $
January	32,645
February	31,456
March	30,270
April	33,129
May	34,456
June	35,256
July	36,218
August	35,456
September	34,250
October	32,156
November	30,125
December	32,275
January

Additional information-

This problem related to Basic Statistics and it discuss about forecasting sales for a business using exponential smoothing model.

Reference no: EM13827628

Questions Cloud

Summarize the current state of web application security : Summarize the current state of Web application security for your Board of Directors to understand. Determine any common themes that need to be addressed specific to the Web security.Describe the techniques and technologies you would use that you woul..

Computing present value of operating lease payments : Kling Technology disclosed the following minimum rental commitments under non-cancelable operating leases in its 2012 annual report:

Reimbursed travel costs to employees for depositions : June 4. Charged 490 hours of professional (lawyer) time to the Rucker Co. breech of contract suit to prepare for the trial, at a rate of $160 per hour. 8. Reimbursed travel costs to employees for depositions related to the Rucker case, $19,800. 12. C..

To what extent do you think biology affects human behavior : The problem is from Sociology and it is discusses about the idea of biology affecting human behavior and sociobiology causing such a controversy. This has been discussed in the answer.

Which model do you think is the best model for your business : Construct a table that shows each of these forecasts for the current year and provide the forecast for January of this coming year. Using the data given, and your forecasts, which model do you think is the best model for your business

Customer relationship management : Customer Relationship Management

Own and run a bed and breakfast business : Question 1 Jack and Jill jointly own and run a bed and breakfast business. The business is run through their partnership, J & J Bed and Breakfast. Jack and Jill also own an investment property together which they purchased in equal proportions. Durin..

Recent research on the causes of abnormal behavior : Recent research on the causes of abnormal behavior has changed my perspective on how I view and treat abnormal behavior.

Calculating the number of days outstanding for accounts : Selected recent balance sheet and income statement information for The Gap, Inc. follows:

User Account

All Pages