Ed Rogers Owns an Appliance Store Forecast the Sales for July Using an Exponential Smoothing Model

Essay

Ed Rogers owns an appliance store. Sales data on a particular model of a DVD player for the past six months are:
$\begin{array}{|l|c|}\hline \text { Month } & \text { Sales } \\\hline \text { Jan } & 35 \\\hline \text { Feb } & 29 \\\hline \text { Mar } & 39 \\\hline \text { Apr } & 42 \\\hline \text { May } & 51 \\\hline \text { Jun } & 56 \\\hline\end{array}$ Forecast the sales for July using an exponential smoothing model with a smoothing constant of 0.40. Assume that the forecast for May was 36.25.