Ed Rogers Owns an Appliance Store Forecast the Sales for July Using an Exponential Smoothing Model

question 16

Essay

Ed Rogers owns an appliance store. Sales data on a particular model of a DVD player for the past six months are:
$\begin{array}{|l|c|}\hline \text { Month } & \text { Sales } \\\hline \text { Jan } & 35 \\\hline \text { Feb } & 29 \\\hline \text { Mar } & 39 \\\hline \text { Apr } & 42 \\\hline \text { May } & 51 \\\hline \text { Jun } & 56 \\\hline\end{array}$ Forecast the sales for July using an exponential smoothing model with a smoothing constant of 0.40. Assume that the forecast for May was 36.25.

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Definitions:

Measurement

Measurement is the process or the result of quantifying the characteristics of phenomena or objects, assigning numbers or symbols according to rules.

Ordinal Scale

A scale of measurement where the attributes being measured are ordered in terms of magnitude or importance, but the intervals between attributes are not necessarily uniform or known.

Rating Scale

A set of categories designed to elicit information about a quantitative or qualitative attribute.

Service

The action of helping or doing work for someone, often refers to intangible goods offered by businesses.