National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows:
|Month||Sales (000 units)|
a. Plot the monthly data on a sheet of graph paper.
b. Forecast September sales volume using each of the following:
(1) The naive approach.
(2) A five month moving average
(3) A weighted average using.60 for August, .30 for July, and.10 for June.
(4) Exponential smoothing with a smoothing constant equal to .20, assuming a a March forecast of 19(000).
(5) A linear trend equation
b) (1) The naive forecasting approach is based exclusively on historical observation of data. It does not attempt to explain the underlying causal relationships that produce the variable being forecast.
The forecast for September is 22
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