Eagle Stores is a retailer of office supplies. The monthly retail demand for a product is...

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Eagle Stores is a retailer of office supplies. The monthly retail demand for a product is provided below from January 2015 to October 2016. DEMAND DATA Year Month 2015 2016 January 616 758 February 832 974 March 898 940 April 964 1106 May 880 1072 June 1016 988 July August 912 1004 828 870 September 894 1036 October 850 1018 November 1010 December 969 a. Use the naïve method to forecast the demand for November and December 2016. b. Use the moving average method with 5 periods to forecast the demand for November and December 2016. c. Use the exponential smoothing method with smoothing constant 0.8 to forecast the demand for November and December 2016. Initialize the forecasting method using the actual demand in January 2015. d. Fit a trend line to the demand data from January 2015 to December 2015. What is the trend line equation? e. What is the forecasted demand for November and December 2016 if you use this trend line equation? f. How reliable is this forecast from a statistical perspective? g. Compute the MAD of the trend line method used in part (d). Use the forecasts from January 2016 to October 2016 to compute the MAD of the method. h. What is the interpretation of MAD? i. Explain clearly why it is important to compute and track forecast accuracy. Eagle Stores is a retailer of office supplies. The monthly retail demand for a product is provided below from January 2015 to October 2016. DEMAND DATA Year Month 2015 2016 January 616 758 February 832 974 March 898 940 April 964 1106 May 880 1072 June 1016 988 July August 912 1004 828 870 September 894 1036 October 850 1018 November 1010 December 969 a. Use the naïve method to forecast the demand for November and December 2016. b. Use the moving average method with 5 periods to forecast the demand for November and December 2016. c. Use the exponential smoothing method with smoothing constant 0.8 to forecast the demand for November and December 2016. Initialize the forecasting method using the actual demand in January 2015. d. Fit a trend line to the demand data from January 2015 to December 2015. What is the trend line equation? e. What is the forecasted demand for November and December 2016 if you use this trend line equation? f. How reliable is this forecast from a statistical perspective? g. Compute the MAD of the trend line method used in part (d). Use the forecasts from January 2016 to October 2016 to compute the MAD of the method. h. What is the interpretation of MAD? i. Explain clearly why it is important to compute and track forecast accuracy.

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a Forecast of Nov 10201056 x 1020 985Forecast of Dec 9851020 x 985 951 b MA4 forecast for Nov 1004870105610204 9875MA4 forecast for Dec 9875 flat fore... View the full answer