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

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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 ...

Purchase this Solution
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