The following data are monthly sales of jeans at a local department store. The buyer would like to forecast sales of jeans for the next month, July. (a) Forecast sales of jeans for March through June using the naïve method, a two-period moving average, and exponential smoothing with an α=0.2 α=0.2 (b) Compare the forecasts using MAD and decide which is best. (c) Using your method of choice, make a forecast for the month of July.
Month Sales
January 45
February 30
March 40
April 50
May 55
June 47