Assume that your stock of sales merchandise is maintained based on the forecast demand. If the distributor's sales personnel call on the first day of each month, compute your forecast sales by each of the three methods requested here. ACTUAL June 134 July 174 August 204 a. Using a simple three-month moving average, what is the forecast for September? (Round your answer to 2 decimal places.) Forecast for September b. Using a weighted moving average, what is the forecast for September with weights of 0.40, 0.50, and 0.10 for June, July, and August, respectively? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Forecast for September c. Using single exponential smoothing and assuming that the forecast for June had been 122, forecast sales for September with a smoothing constant α of 0.40. (Round your answer to 2 decimal places.) Forecast for September

a. 204

b. 161

c. 169.008

Explanation:

Data

ACTUAL

June 134

July 174

August 204

a. Using a simple three-month moving average, what is the forecast for September?

Simple three month moving average is given by summation or ACTUAL/Number of Months

= (134 + 174 + 204)/3

= 612/3

= 204

b. Using a weighted moving average, what is the forecast for September with weights of 0.40, 0.50, and 0.10 for June, July, and August, respectively?

Using weighted moving average

Forecast = 0.4(June) + 0.5(July) + 0.1(August)

= 0.4 * 134 + 0.5 * 174 + 0.1 * 204

= 161

c. Using single exponential smoothing and assuming that the forecast for June had been 122, forecast sales for September with a smoothing constant α of 0.40.

We start by calculating expected forecast of July then August and finally, September.

This is given by

F, July = F,June + α(A, June - F, June)

F, July = 122 + 0.4(134 - 122)

F, July = 126.8

F, August = F,July + α(A, July - F, July)

F, August = 126.8 + 0.4(174 - 126.8)

F, August = 145.68

F, September = F, August + α(A, August - F, August)

F, September = 145.68 + 0.4(204 - 145.68)

F, September = 169.008

answer; capital structure decision;

answer; ///pegged exchange rate with the united states;