Purchase Solution

Forecasting problem:Cool-Man air conditioners

Not what you're looking for?

Ask Custom Question

11-19
Sales of Cool-Man air conditioners have grown steadily during the past five years, as shown in the following table.
Year Sales
1 450
2 495
3 518
4 563
5 584

a) using exponential smoothing constants of 0.3, 0.6, and 0.9, develop forecasts for years 2 through 6. The sales manager had predicted, before the business started, that year 1's sales would be 410 air conditioners. Which smoothing constant gives the most accurate forecast?
b) Use a three-year moving average forecasting model to forecast sales of Cool-Man air conditioners.
c) Using linear trend analysis, develop a forecasting model for the sales of Cool-Man air conditioners.
d) Which of the methods analyzed here would you use? Explain your answers.

Answers for above:
a)MAPE0.3=15.37%, MAPE0.6 =10.20%, MAPE0.9 =7.05%.
b)MAPE3-MA 11.71%.
c)Y=421.20 +33.60X if years are coded 1 to 5. MAPE = 1.08%.
d)Linear trend analysis, Why?

Attachments
Purchase this Solution
Solution Summary

This posting contains solution to following problem on forecasting.

Purchase this Solution
Free BrainMass Quizzes
Probability Quiz

Some questions on probability

Multiplying Complex Numbers

This is a short quiz to check your understanding of multiplication of complex numbers in rectangular form.

Geometry - Real Life Application Problems

Understanding of how geometry applies to in real-world contexts

Graphs and Functions

This quiz helps you easily identify a function and test your understanding of ranges, domains , function inverses and transformations.

Solving quadratic inequalities

This quiz test you on how well you are familiar with solving quadratic inequalities.

View More Free Quizzes
Related BrainMass Solutions

  • Smoothing Constant And Trend Analysis For Air Conditioners

    method, develop a forecasting model for the sales of Cool-Man air conditioners (see Problem 5-18).

  • Forecasting Problems

    Using the exponential smoothing with a weight of = 0.30, develop forecasts for years 2 through 6. 5-22 Using the trend projection method, develop a forecasting model for the sales of Cool-Man air conditioners (see problem 5-18). 5-33 Management

  • Forecasting Models

    conditioners using a forecasting model.

  • Forecasting, Regression

    model has been developed: Y=36+4.3X where y= deman for air conditioners Xi= outside temperature What is the demand for air conditioners when the temperature is 70 degrees a 360

  • Forecasting Aztec Temperatures Using a Modelling Equation

    162778 Forecasting Aztec Temperatures Using a Modelling Equation Brian Buckley has developed the following forecasting model: y = 46 + 8.3x where y demand for Aztec air conditioners and x = the outside temperature (°F) a) Forecast demand for

  • exponential smoothing forecast

    462388 Exponential smoothing Sales of Cool-Man air conditioners have grown steadily during the past 5 years: The sales manager had predicted, before the business started, that year 1's sales would be 410 air conditioners.

  • Forecasting model

    John smith has developed the following forecasting model: Y= 36+4.3X where Y= demand for 10K air conditioners X= the outside temperature a) Forecast the demand for 10K when the temperature is 70F?

  • Forecast

    Sales of cool man air conditioners have grown steadily during the past five years. The sales manager had predicted, before the business started, that year 1's sales would be 410 air conditioners.

  • Demand and Forecasting Necessities

    Cool Aire Corporation manufactures a line of room air conditioners. Its break even sales level is 33,000 units. Sales are approximately normally distributed. Expected sales next year are 40, 000 units with a standard deviation of 4,000 units. a.

View More Related Solutions