Myron Sheu, the owner of the Chocolate Outlet Store wants to forecast chocolate demand. Demand for...

   

Transcribed Image Text:

Myron Sheu, the owner of the Chocolate Outlet Store wants to forecast chocolate demand. Demand for the preceding four years is shown in the following table: Year 1 Demand (Pounds) 68,800 2 71,000 3 75,500 71,200 Forecast demand for Year 5 using the following approaches: (a) a three-year moving average; (b) a three-year weighted moving average using .40 for Year 4, 20 for Year 3, and 40 for Year 2; (c) exponential smoothing with a = .30, and assuming the forecast for Year 1 = 68,000. Myron Sheu, the owner of the Chocolate Outlet Store wants to forecast chocolate demand. Demand for the preceding four years is shown in the following table: Year 1 Demand (Pounds) 68,800 2 71,000 3 75,500 71,200 Forecast demand for Year 5 using the following approaches: (a) a three-year moving average; (b) a three-year weighted moving average using .40 for Year 4, 20 for Year 3, and 40 for Year 2; (c) exponential smoothing with a = .30, and assuming the forecast for Year 1 = 68,000.