Beth's Hot Chips on-line business uses a T1 line to connect their electronic business to the internet. They have been in business for one year and have had the same bandwidth (Internet access capacity) for that entire year. Their percentage utilization is given as follows:

Month	Bandwidth
January	35.5%
February	38.2%
March	44.1%
April	47.7%
May	51.2%
June	55.9%
July	60.0%
August	62.3%
September	65.7%
October	71.1%
November	75.7%
December	79.3%

Produce a forecast for the next month (January of next year) using each of the following techniques

a) Three period moving average

b) Three period weighted moving average using the weights of 1, 2, and 5

c) Exponential smoothing using the forecast for the first period of 35% and α = 0.8

d) Linear Trend Model

e) What would you recommend to Beth regarding the forecast for the next month? Explain. Based on the analysis, estimate when will Beth need additional bandwidth?

Answer rating: 100% (QA)

1 Three period moving average January 355 February 382 Ma... View the full answer