HST400 Week 4 Exercise

Please use the posted Excel template for this question and submit your completed Excel file. Provide your answers to each of the following parts on a different worksheet (in the provided worksheets for methods #1 and #2 in the same file). The ABC Corporation has collected the following data on its daily sales in the past 4 weeks. The company only operates from Monday to Friday.

The ABC Corporation
		Period	Demand	Forecast
4 Weeks Ago	Monday	1	744
	Tuesday	2	924
	Wednesday	3	1194
	Thursday	4	294
	Friday	5	564
3 Weeks ago	Monday	6	1104
	Tuesday	7	1014
	Wednesday	8	1284
	Thursday	9	474
	Friday	10	330
2 weeks Ago	Monday	11	1284
	Tuesday	12	816
	Wednesday	13	1104
	Thursday	14	474
	Friday	15	924
Last week	Monday	16	1284
	Tuesday	17	1062
	Wednesday	18	1464
	Thursday	19	744
	Friday	20	672
This week	Monday	21

Method#1 Using a weighted moving average of 0.35 [last day], 0.30 [2 days ago] 0.15 [3 days ago], 0.10 [4 days ago], 0.10 [5 days ago], calculate the daily forecasts for the last 15 days. In addition, what is the forecast for the Monday of this week?

Method 2 Assume that the forecast for Monday of 4 weeks ago was 570 units. Using an Exponential Smoothing with 0.25 ,calculate the daily forecasts for the last 15 days. In addition, what is the forecast for the Monday of this week?

Calculate the Mean Squared Error for each of the above methods based on the daily forecasts for the last 15 days. Which method is more accurate? Why?