Consider the Sales for Six Consecutive Weeks for Sam's Strawberries $\alpha$

question 20

Essay

Consider the sales for six consecutive weeks for Sam's Strawberries. The sales are in "flats" sold.Week Sales
1 16
2 18
3 14
4 10
5 20
6 22
a. Using a moving average with AP = 3, forecast the sales for weeks four through six.
b. Use a weighted moving average with weights of .5 (most recent), .4, and .1 (oldest) to predict the sales for weeks four through six.
c. Use the naïve approach to predict the sales for weeks four through six.
d. Use exponential smoothing with $\alpha$ = .3 to forecast sales for weeks four through six.

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Definitions:

Deductible

The amount that a taxpayer must pay out-of-pocket before an insurance company will pay any expenses.

Unreimbursed Employee Business Expenses

Expenses employees incur in the course of performing their job that are not reimbursed by the employer.

Itemized Deductions

Expenses allowed by the IRS that can be subtracted from adjusted gross income to reduce taxable income, including mortgage interest, medical expenses, and charitable contributions.

2% Floor

A tax rule that limits the deductibility of certain miscellaneous expenses to only the portion that exceeds 2% of the taxpayer’s adjusted gross income.