OM300: Homework #8For problems 1 and 2, construct an EXCEL spreadsheet to do the calculations. Submit two “screenshotsâ of your Excel spreadsheet. The first printout should show your solution, and the second should display the formulas, gridlines, and the row and column headings.Do problem 3 using Excel and Excelâs SOLVER. Submit two âscreen snapshotsâ of your EXCEL spreadsheet. The first printout should show your solution and the Solver dialog settings, while the second should display the formulas, gridlines, and the row and column headings.1. The following data are monthly sales of jeans at a local department store. Use this data to answer the following questions.Month SalesJanuary 55February 47March 50April 40May 30June 45a. (10) What are the naïve forecasts for February through July?b. (15) What are the two-month moving average forecasts for March through July?c. (15) What are the exponential smoothing forecasts for February through July using ? = 0.20? Hint: Use the naïve forecast to start the exponential smoothing process.2. Compute the MAD, MSE, and Tracking Signal for thea. (9) Naïve forecasts for February through June,b. (9) Two-month moving average forecasts for March through June, andc. (9) Exponential smoothing forecasts for February through June.d. (8) Based on these results, which forecasting method would you recommend that the store use to forecast the future monthly sales of jeans and why?3. Construct a spreadsheet model to calculate the exponential smoothing forecasts for February through June and the MSE of these forecasts.Use Excel Solver to find the value of ? that minimizes the MSE of these forecasts.
