Given Below Are the Monthly Actual Sales of Wangdoodles for December

question 28

Essay

Given below are the monthly actual sales of Wangdoodles for December of one year and the first six months of the following year.Also given are three sets of forecast numbers:F(1): the last period technique.
F(2): a three-month weighted moving average, with weights of: 50%
for the most recent month; 35% for the previous month; and 15%
for the month before that.
F(3): an exponentially smoothed average with $\alpha$ = 0.20.
$\begin{array}{lcccc}\text { Month}&\text { Actual } & F(1) & F(2) & F(3)\\\text { Dec } & 251\\\text { Jan } & 255 & 251 & 259 & 260 \\\text { Feb } & 279 & 255 & 257 & 259 \\\text { Mar } & 267 & 279 & 262 & 262 \\\text { Apr } & 287 & 267 & 267 & 263 \\\text { May } & 263 & 287 & 278 & 267 \\\text { Jun } & 270 & 263 & 272 & 266\end{array}$

A.Fill in July's forecasted sales, using each of the three forecasting techniques.
B.Which of the three forecasting methods do you prefer? Why?

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Definitions:

Period Of Sale

The time frame during which a sale transaction is completed, from the offer to the transfer of ownership.

Revenue Recognition

The accounting principle that revenue should be recorded when earned, regardless of when payment is received, ensuring accurate financial reporting.

Period Of Sale

The time period between when a product is listed for sale and when it is actually sold.

Partial Billings

Invoicing method where a customer is billed incrementally for partially completed work, often used in long-term projects.