Historical demand for a product is as follows. Use this data for all questions below.

Months;       Cases (1000s)

Jan;                59.2

Feb;                65.2

Mar;               61.7

Apr;                70.0

May;               74.9

Jun;                82.4

Jul;                 72.1

Aug;               82.4

1. Sep;                79.4
   
   1) Calculate a forecast for October based on a simple three-month moving average.
   
   2) Calculate a forecast for October based on a weighted moving average. Use a weight factor of 60% for the most recent month, 30% two months ago, and 10% three months ago.
   
   3) This time, calculate a forecast for October based on exponential smoothing with α = 0.2 and a September forecast = 75.00.
2. 
   4) Develop a simple linear regression model based on historical demand data between January - September.
   • Use Excel to develop a scatter plot of the historical data, with x-axis for time and y-axis for demand.
   • Display the linear trend line and linear regression equation on your chart. Identify the slope and y-intercept.
   
   5) Use your linear regression model from part #4 to calculate demand forecasts for the next three months (October, November, and December). Show your calculation steps.

Answer rating: 100% (QA)

Lets go through each question step by step Calculate a forecast for October based on a simple threemonth moving average To calculate the forecast for ... View the full answer