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    Projecting Monthly Computer Sales

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    Ms. Winnie Lynn's company sells computers monthly sales for a six-month period are as follows.
    January 18,000
    February 22,000
    March 16,000
    April 18,000
    May 20,000
    June 24000

    a.) Plot the monthly data
    b.) Compute the sales forecast for July using the following approaches:
    1.) 4 month moving average,
    2.) A weighted three-month moving average (using .5 for June and .3 for May and .2 for April)
    3.) A linear trend equation, simple exponential moving with smoothing constant equal to.4 and assuming February forecast of 18,000

    c.) Which method do you think is least appropriate? Why?

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    Solution Summary

    The is a forecasting problem concerning a company that sells computers. Forecasting methods used are four (4) month moving average, a weighted three-month moving average, linear trend equation, and a simple exponential moving with smoothing constant.