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    TearDrop Company: Moving Average Method to predict sales

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    The TearDrop Company has the following historical sales data:
    Year Sales
    2003 $50,000
    2004 $52,000
    2005 $48,000

    Required:

    1. Using the Moving Average Method, predict the sales for 2006.

    2. Using Exponential Smoothing, predict the sales for 2006. Assume that the most recent years are the most representative of future

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    https://brainmass.com/business/accounting/teardrop-company-moving-average-method-predict-sales-368591

    Solution Preview

    Your requested problem is addressed in detail in the attached file.

    Forecast for 2006 sales computed using moving average method and also using exponential smoothing.

    Moving Average Method

    The TearDrop Company has the following historical sales data:
    Year Sales
    2003 $50,000
    2004 $52,000
    2005 $48,000

    Required:

    1. Using the Moving Average Method, predict ...

    Solution Summary

    This solution helps with a problem the involves the moving average method and exponential smoothing.

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