For developing the forecast for year 12 if one wants to use the 3-year moving average approach, then the forecast will be the average of demand observed during years:

.

Using the 3-year moving average, provide the forecast for period 12 (round your response to one decimal place).

if one wants to develop the forecast for period 12 using the 3-year weighted moving average with weights and , where is for the most recent period, then the weights have to be used in the following order to determine the weighted average (round your responses to two decimal places):

Weight to be used for period 9 demand is:

Weight to be used for period 10 demand is:

Weight to be used for period 11 demand is:

Using the 3-year weighted moving average with weights and , using for the most recent period, provide the forecast for period 12 (round your response to one decimal place).

Mean absolute deviation for the forecast developed using the 3-year moving average is , and for the 3-year weighted moving average it is . Based on this information, the better forecast is achieved using the

Choose one

Weighted moving average

Or

The 3 year moving average

The following table shows the actual demand observed over the last 11 years: This exercise contains only parts b, c, and d. b) Using the 3-year moving average, provide the forecast from periods 4 through 12 (round your responses to one decimal place