Question

Your manager is trying to determine what forecasting method to use. Based upon the following historical data, calculate the following forecast and specify what procedure you would utilize.MONTH DEMANDJanuary 59February 65March 65April 67May 71June 70July 77August 77September 77October 75November 83December 81Calculate the simple three-month moving average forecast for April through December. What is the forecast for December? (Round your answer to 2 decimal places)a) 78.33b) 74.67c) 76.33d) 77.00Calculate the weighted three-month moving average using weights of 0.50 (t-1), 0.30 (t-2), and 0.20 (t-3) for April through December. What is the forecast for December? (Round your answer to 2 decimal places)a) 79.40b) 77.00c) 76.00d) 73.70Calculate the single exponential smoothing forecast for February through December using an initial forecast (F1=F-January) of 63. (Use alpha of 0.2) What is the forecast for December? (Round your answer to 2 decimal places) a) 66.30b) 74.37c) 72.22d) 71.52Calculate the mean absolute deviation (MAD) for the forecasts made by each technique in April through December. Which forecasting method do you prefer? (Round your answer to 2 decimal places)a) 3-month moving average (4.15)b) 3-month weighted moving average (3.99)c) Exponential smoothing method (alpha=0.30) (3.58)d) 3-month weighted moving average (3.58)

Answer 1

Answer:

Following are the solution to the given question:

Step-by-step explanation:

Please find the attached file.

For question 1:

Forecast for December:

$\to \frac{(77+75+83)}{3} \\\\ \to 78.33$

For question 2:

Forecast for December:

$\to (77 \times .5+75 \times 3+83 \times .2) \\\\\to 79.40$

For question 3:

Forecast for December:

$\to 72.22+(83-72.22)\times 0.2 \\\\\to 74.37$

For question 4:

So, the 3-month weighted moving average (3.58)