Answered: A convenience store recently started to…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.7: Exponential Smoothing Models

Problem 26P: The file P13_26.xlsx contains the monthly number of airline tickets sold by the CareFree Travel...

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Transcribed Image Text:A convenience store recently started to carry a new brand of soft drink. Management is interested in estimating future sales volume to determine whether it should continue to carry the new brand or replace it with another brand. The following table provides the number of cans sold per week. Use both the trend projection with regression and the exponential smoothing (let a=0.4 with an initial forecast for week 1 of 603) methods to forecast demand for week 13. Compare these methods by using the mean absolute deviation and mean absolute percent error performance criteria. Does your analysis suggest that sales are trending and if so, by how much? Period Sales 1 2 3 603 630 653 4 732 (i) Obtain the trend projection with regression forecast. The forecast for week 13 is. (Enter your response rounded to the nearest whole number.) 5 660 6 616 7 725 8 700 9 764 10 686 11 656 12 752 D

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