Consider the Sales for Six Consecutive Weeks for Sam's Strawberries

question 34

Essay

Consider the sales for six consecutive weeks for Sam's Strawberries. The sales are in "flats" sold. $$\begin{array} { | c | c | } \hline \text { Week } & \text { Sales } \\\hline 1 & 16 \\\hline 2 & 18 \\\hline 3 & 14 \\\hline 4 & 10 \\\hline 5 & 20 \\\hline 6 & 22 \\\hline\end{array}$$

a.Using a three-period moving average, forecast the sales for weeks 4 through 6.
b.Use exponential smoothing with ? = 0.3 to forecast sales for weeks 4 through 6. Assume the forecast for week 1 to be 10.
c.Use linear regression (time series) to develop a prediction equation that will forecast sales. Then use that prediction equation to get forecasts for weeks 4 through 6.
d.Use MAD to pick the best forecasting method of A through C.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use.

Wages Expense

The total amount of wages paid by a business to its employees for a specified period of time.

Accounts Receivable

Money owed to a business by its customers for goods or services provided on credit.

Generally Accepted Accounting Principles

A set of accounting standards and procedures adopted in the U.S. that guide how financial statements are prepared and reported.