Question: 1 ) Use a three period moving average model to forecast the demand in January of 1 9 9 3 . Also calculate the RMSE

1) Use a three period moving average model to forecast the demand in January of 1993. Also calculate the RMSE for this model. Use the table below:
Month Demand (A) Demand (F)(A-F)2
Jan-9225.6
Feb-9224.7
Mar-9221.3
April-9213.9
May-9212.6
June-9218
July-9221.5
Aug-9222.3
Sep-9230.7
Oct-9215
Nov-9213.8
Dec 22.6
2) Use a five period moving average model to forecast the demand in January of 1993. Also calculate the RMSE for this model. Use the table below to carry out your calculations. How does this model compare with the three period model?
Month Demand (A) Demand (F)(A-F)2
Jan-9225.6
Feb-9224.7
Mar-9221.3
April-9213.9
May-9212.6
June-9218
July-9221.5
Aug-9222.3
Sep-9230.7
Oct-9215
Nov-9213.8
Dec 22.6
3) Given the below demand data what are the exponential smoothing forecasts for periods Feb-December using a=0.10. Assume F1=D1. Also calculate RMSE for this model
Month Demand (A) Demand (F)(A-F)2
Jan-9225.6
Feb-9224.7
Mar-9221.3
April-9213.9
May-9212.6
June-9218
July-9221.5
Aug-9222.3
Sep-9230.7
Oct-9215
Nov-9213.8
Dec-9222.6

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