A convenience store recently started to carry a new brand of soft drink. Management is interested in estimating future sales volume to determine whether it should continue to carry the new brand or replace it with another brand. The following table provides the number of cans sold per week. Use both the trend projection with regression and the exponential smoothing (let a=0.4 with an initial forecast for week 1 of 636) methods to forecast demand for week 13. Compare these methods b using the mean absolute deviation and mean absolute percent error performance criteria. Does your analysis suggest that sales are trending and if so, by how much? Period Sales 1 2 636 606 (1) Obtain the trend projection with regression forecast. The forecast for week 13 is 3 4 5 6 641 746 654 608 7 725 (Enter your response rounded to the nearest whole number) 8 705 9 10 11 723 731 655 O 12 754
A convenience store recently started to carry a new brand of soft drink. Management is interested in estimating future sales volume to determine whether it should continue to carry the new brand or replace it with another brand. The following table provides the number of cans sold per week. Use both the trend projection with regression and the exponential smoothing (let a=0.4 with an initial forecast for week 1 of 636) methods to forecast demand for week 13. Compare these methods b using the mean absolute deviation and mean absolute percent error performance criteria. Does your analysis suggest that sales are trending and if so, by how much? Period Sales 1 2 636 606 (1) Obtain the trend projection with regression forecast. The forecast for week 13 is 3 4 5 6 641 746 654 608 7 725 (Enter your response rounded to the nearest whole number) 8 705 9 10 11 723 731 655 O 12 754
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter1: Functions
Section1.EA: Extended Application Using Extrapolation To Predict Life Expectancy
Problem 6EA
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Transcribed Image Text:A convenience store recently started to carry a new brand of soft drink. Management is interested in estimating future sales volume to determine whether it should
continue to carry the new brand or replace it with another brand. The following table provides the number of cans sold per week. Use both the trend projection with
regression and the exponential smoothing (let a=0.4 with an initial forecast for week 1 of 636) methods to forecast demand for week 13. Compare these methods by
using the mean absolute deviation and mean absolute percent error performance criteria. Does your analysis suggest that sales are trending and if so, by how
much?
0
7
8
9 10 11
12
Period
Sales
1 2
636 606
3
4
641 746
5
6
654 608
725
705
723
731
655
754
(1) Obtain the trend projection with regression forecast.
The forecast for week 13 is
(Enter your response rounded to the nearest whole number)
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Step 1: Determine the given variables.
VIEWStep 2: Find the forecast for week 13 using trend projection.
VIEWStep 3: Find MAD and MAPE for the method of trend projection.
VIEWStep 4: Find the forecast for week 13 using exponential smoothing.
VIEWStep 5: Find the MAD and MAPE.
VIEWStep 6: Compare both the methods.
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