Sales of iPhone 6 have been going well for a local electroni

Sales of iPhone 6 have been going well for a local electronic store. These sales for the past fourteen weeks are shown below:

a) Use exponential smoothing constant of 0.2 to forecast the sales of iPhone6i. Assuming the forecast for week 1 is 35 iphone 6s. What is the MAD of the model?

b) Forecast the sales for week 15 using a 5-week weighted moving average. Use 5,4,3,2, and 1 for the weights of the most recent, second most recent, third most recent, fourth most recent and fifth most recent periods, respectively. What is the MAD of the model? What is the forecast value for week 15?

c) Would you prefer to use the exponential smoothing model or the 5-week weighted model? Explain your answer.

Week	Sales
1	35
2	36
3	30
4	23
5	38
6	15
7	20
8	27
9	18
10	24
11	30
12	32
13	34
14	36

The mean absolute deviation for exponential smoothing is giving a smaller absolute deviation value, which means it is a better forecast value. Thus, exponential smoothing might be preferred over weighted average method in this case.

Hope this helps. ask if you have any doubts

			alpha =	0.2
Week	Sales	Forecast		MAD
		Exponential	Wt. Average	Exponential	Wt. Average
1	35	35		0.00
2	36	35.000		1.00
3	30	35.200		5.20
4	23	34.160		11.16
5	38	31.928		6.07
6	15	33.142	31.933	18.14	16.933
7	20	29.514	26.133	9.51	6.133
8	27	27.611	23.333	0.61	3.667
9	18	27.489	23.933	9.49	5.933
10	24	25.591	21.733	1.59	2.267
11	30	25.273	21.867	4.73	8.133
12	32	26.218	24.933	5.78	7.067
13	34	27.375	27.667	6.63	6.333
14	36	28.700	30.267	7.30	5.733
15		30.160	33.067

		MAD		6.23	6.91

Sales of iPhone 6 have been going well for a local electronic store. These sales for the past fourteen weeks are shown below: a) Use exponential smoothing const

Sales of iPhone 6 have been going well for a local electroni

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