A company has observed the following demand during the past 10 months for one of its popular products:

1. Plot these data on a graph. Do you observe any pattern such as trend, seasonal, cyclical, or random variations in the data?

2. Compute 3-month moving average forecasts from month 4 to month 11. Plot the forecast in the same graph that you generated in a.

3. Compute forecasts from month 4 to 11 using exponential smoothing. Assume F4 = 80 and α = 0.2. Plot these forecasts on the same graph that you generated in b.

4. Compare the forecasts that you generated in b and c with the actual demand data plotted in a. Which one seems to be a superior forecasting technique?

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3 4 8. 10 Month 110 Demand 60 80 40 120 70 120 100 80 80