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Location, location, location can be the most important aspect to a business. Why? Where can your customers go to find you and your business? On the web? On a social media site? In a brick and mortar location? Where would you seek to be found with your ficticious business? Why do most entrepreneurs start out of their home? Amazon, HP, Dell, Uber began in the garage or in a dorm room. What are the benefits? Negatives? Can you do that with your business? Recognizing that many entrepreneurs are between 30-40 years old and employed full time, how do you go about creating your own business when you are employed and caring for a spouse or children? Can your home be a major distraction for you?
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Carol’s Auto Sales has sold the following number of cars in the last 6 months: Jan 370 Feb 352 Mar 405 Apr 390 May 372 Jun 471
The 3-month moving average forecast for July is 411 cars. The 3-month weighted moving average forecast for July (using these weights: one month back: 0.5, two months back: 0.3, three months back: 0.2) is 425.1. The exponential smoothing forecast for July (using alpha = 0.3 and a forecast of 375 for January) is 406.553. The exponential smoothing forecast for July (using alpha = 0.2 and a forecast of 380 for January) is 397.811. a) Calculate a linear trend forecast for July. b) Compute the MAD for the five forecasts above. Which forecast is the best for July and why?
dolution.
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