Chapter-8 questions (pg. 308)

7. The text discusses four principles of forecasting. Name and describe each.

8. Name and describe the three principles of data collection.

9. Describe the characteristics and differences between qualitative, quantitative, extrinsic, and intrinsic forecasting techniques.

10. Describe and give the advantages and disadvantages of (a) moving averages and (b) exponential smoothing.

Chapter 8 Problem 8.3 (pg. 309)

Monthly demand over the past 10 months is given in what follows.

Month	Actual demand	Forecast
1	102
2	91
3	95
4	105	96
5	94
6	100
7	106
8	95
9	105
10	98
11

a. Graph the monthly actual demand using MS Excel and submit it as a separate file.

(Please submit properly drawn graph and/or chart using MS Excel for your solutions to this part of the problem in addition to your answers to the rest of the assignment. Hand-drawn and/or images of your solutions are not accepted for grading purposes.)

b. What is your best guess for the demand for month 11?

c. Using a three-month moving average, calculate the forecasts for months 4, 5, 6, 7, 8, 9, 10, and 11. Insert your results in the forecast column above (month 4 forecast is already calculated and filled out for guidance purposes).