The Garden Avenue Seven sells tapes of its musical performances. The following data show sales for the past 18 months. The group’s manager wants an accurate method for forecasting future sales.
a. Use exponential smoothing, with a = 0.3, 0.4, and 0.5. Which value of a provides the best forecasts?
b. Use trend projection to provide a forecast. What is the value of MSE?
c. Which method of forecasting would you recommend to the manager?Why?
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