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Consider the Sales for Six Consecutive Weeks for Sam's Strawberries α\alpha

Question 67

Essay

Consider the sales for six consecutive weeks for Sam's Strawberries. The sales are in "flats" sold.Week Sales
1 16
2 18
3 14
4 10
5 20
6 22
a. Using a moving average with AP = 3, forecast the sales for weeks four through six.
b. Use a weighted moving average with weights of .5 (most recent), .4, and .1 (oldest) to predict the sales for weeks four through six.
c. Use the naïve approach to predict the sales for weeks four through six.
d. Use exponential smoothing with α\alpha = .3 to forecast sales for weeks four through six.

Correct Answer:

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a. Week 4: (16 + 18 + 14)/3 = 16
Week 5:...

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