Sales (In Thousands) of the New Thorton Model 506 Convection

question 54

Essay

Sales (in thousands) of the new Thorton Model 506 convection oven over the eight-week period since its introduction have been as follows: ​
a.
Which exponential smoothing model provides better forecasts, one using α = .6 or α = .2? Compare them using mean squared error.
b.
Using the two forecast models in part (a), what are the forecasts for week 9?

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Definitions:

Operating Activities

Activities directly related to the business's primary operations, including cash flows from sales, expenses, and cost of goods sold.

Total Assets

The total of a company's assets, encompassing both short-term and long-term assets.

Direct Method

In cash flow statement preparation, this approach lists the major categories of gross cash receipts and payments, offering more detail compared to the indirect method.

Operating Activities

Activities that relate to the primary operations of a company, including production, sales, and delivery of its products or services.