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Month |
Sales |
|
(units) |
Feb |
19 |
Mar |
18 |
Apr |
17 |
May |
20 |
Jun |
19 |
Jul |
22 |
Aug |
20 |
2, A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage was forecast to be 88 percent of capacity; actual usage was 89.6 percent of capacity. A smoothing constant (Alpha) of .2 is used.
a.Prepare a forecast for September.
b. Assuming actual September usage of 92 percent, prepare a forecast for October usage.
3. A cosmetics manufacturer’s marketing department has developed a linear trend equation that can be used to predict annual sales of its popular Hand & Foot Cream.
Ft =80+14t
Where
Ft Annual forecast in sales (bottles)
t= 0 corresponds to 1990
a. Predict annual sales for the year 2006 using the equation.
4.The manager of travel agency has been using a seasonally adjusted forecast to predict demand for packaged tours. The actual and predicted values are as follows:
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