# Homework Solution Weighted Averages - Exponential Smoothing - Trend

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Homework Solution Weighted Averages - Exponential Smoothing - Trend
MGMT E-5070 Homework Solution Weighted Averages - Exponential Smoothing - Trend Cool-Man Air Conditioners TM Manual Computer-Based Part A

Cool-Man Air Conditioners
Sales of Cool-Man air conditioners have grown steadily over the past five years: Year Sales 1st 450 2nd 495 3rd 518 4th 563 5th 584 6th ?

Cool-Man Air Conditioners
REQUIREMENT: The sales manager had predicted, before the business started, that year 1’s sales would be 410 units. Using exponential smoothing with a weight of α = 0.30, develop forecasts for years 2 through 6 .

Cool-Man Air Conditioner
Exponential Smoothing 2nd Year st Year st Year 1st Year Forecast = Forecast α ( Actual - Forecast ) = units ( 450 units units ) = units ( 40 units ) = units units = units

Cool-Man Air Conditioner
Exponential Smoothing 3rd Year nd Year nd Year 2nd Year Forecast = Forecast α ( Actual - Forecast ) = units ( 495 units units ) = units ( 73 ) = units units = units

Cool-Man Air Conditioner
Exponential Smoothing 4th Year rd Year rd Year 3rd Year Forecast = Forecast α ( Actual - Forecast ) = units ( 518 units units ) = units ( 74.1 ) = units units = units

Cool-Man Air Conditioner
Exponential Smoothing 5th Year th Year th Year th Year Forecast = Forecast α ( Actual - Forecast ) = units ( 563 units units ) = units ( ) = units units = units

Cool-Man Air Conditioner
Exponential Smoothing 6th Year th Year th Year th Year Forecast = Forecast α ( Actual - Forecast ) = units ( 584 units units ) = units ( 88.8 ) = units units = units

Cool-Man Air Conditioners
REQUIREMENT: Using the smoothing coefficients of 0.60 and 0.90, develop forecasts for the sales of Cool- Man air conditioners.

Cool-Man Air Conditioners
Smoothing coefficient ( α ) = 0.60 Year Sales Forecast 1st 450 - 2nd 495 434 3rd 518 470.6 4th 563 499.0 5th 584 537.4 6th ? 565.6

Cool-Man Air Conditioners
Smoothing coefficient ( α ) = 0.90 Year Sales Forecast 1st 450 - 2nd 495 446 3rd 518 490.10 4th 563 515.21 5th 584 558.20 6th ? 581.40

Homework Solution Weighted Averages - Exponential Smoothing - Trend
Cool-Man Air Conditioners TM Manual Computer-Based Part A

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