Question: A) Develop forecasts for periods 7 through 10 for the demand data in the table using a three- period moving average, a weighted moving average

A) Develop forecasts for periods 7 through 10 for the demand data in the table using a three- period moving average, a weighted moving average using 0.6, 0.3, and 0.1, and exponential smoothing with alpha = 0.7. Use a 6thperiod forecast of 135 as the starting point for the exponential smoothing technique.

Period Actual MA n = 3 WMA Exp. Smoothing
1 64
2 84
3 91
4 97
5 115
6 135
7 137
8 144
9 153
10 171

B) A forecasting method has produced the following over the past five months. What is the mean absolute deviation?

Actual Forecast Error
10 11 -1
8 10 -2
10 6 4
6 6 0
9 4 5

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