3-2 Sales of Cool-Man air conditioners have grown steadily during the past 5 years: Year Sales 1 440 2 465 3 520 4 573 5 586 6 ?

3-2 Sales of Cool-Man air conditioners have grown steadily during the past 5 years:

Year Sales

1 440

2 465

3 520

4 573

5 586

6 ?

The sales manager had predicted, before the business started, that year 1's sales

would be 410 air conditioners.

a. Using exponential smoothing with a weights of a = 0.30, 0.60, and 0.90

develop forecasts for years 2 through 6.

b. What effect did the smoothing constant have on the forecasts for Cool-Man air

conditioners?

c. Which smoothing constant gives the most accurate forecast?

d. Use a three-year moving average forecasting model to forecast the sales of

Cool-Man air conditioners.

e. Use the trend projection method to develop a forecast for the sales of Cool-

Man air conditioners.

f. Which of the five models you developed was the most accurate (best)?