Question: a. A weighted moving average method is used to forecast demand for a product. The assigned weights are 5 to the previous month's demand, 3
a. A weighted moving average method is used to forecast demand for a product. The assigned weights are 5 to the previous month's demand, 3 to demand two months ago, and 1 to demand three months ago. The previous sales are 83 in December, 82 in January, and 84 in February. Write down the forecast for March. Give your answer to two decimal places.
b. Demand in period 1 was 25 units and the demand in period 2 was 28 units. Assume that the forecast for period 1 was for 30 units. If the firm uses exponential smoothing with an alpha value of 0.2, write down the forecast for period 3. Give your answer to two decimal places.
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