The demand for Krispee Crunchies, a favorite breakfast cereal of people born in the 1940s, is experiencing a decline. The company wants to monitor demand for this product closely as it nears the end of its life cycle. The trend-adjusted exponential smoothing method is used with = 0.1 and =0.2. At the end of December, the January estimate for the average number of cases sold per month, , was 900,000 and the trend, , was -50,000 per month. The following table shows the actual sales history for January, February, and March. Generate forecasts for February, March, and April. MonthSalesJanuary890,000February800,000March825,000
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The Demand for Krispee Crunchies, a favorite breakfast cereal of people born in the 1940s, is experiencing a decline. The company wants to monitor demand for this product closely as it nears the end of its life cycle. The following table shows the actual sales history for Januaryminus−October. Generate forecasts for Novemberminus−December, using the trend projection by regression method. Month
month sales month sales
JAN 895,000 June 745,000
Feb 800,000 July 715,000
March 795,000 Aug 725,000
April 800,000 Sept 690,000
May 800,000 Oct 665,000
Obtain the forecasts for Novemeber and Decemeber
Period Forecast, ft
Novemeber
December
Looking athe the accuracy of its forecasts since september, as well as the other statistics provided, how confident are you in these forecasts for Nov- Dec? If current conditions remain in place, r2=_________ and, thus, (1)_(Some confidence) (No confidence)- that the (2),__(UPWARD?)