The last seven weeks of demand at a new car dealer are shown below.

a) Use a three-period weighted-moving average to determine a forecast for the 8th week using weights of 3, 2, and 1. Calculate the MAD for this forecast.

b) use exponential smoothing with an alpha of 0.4 to determine a forecast for the 8th week and an initial forecast of 25 for week. calculate the MAD.

C) Which method will you use?

Week Sales

1 25

2 30

3 27

4 31

5 27

6 29

7 30

Answer rating: 100% (QA)

a Forecast for the 8th Week is F 8 By using three period weighted Moving Average using three ... View the full answer