Question: please write answer in notebook Problem 3 (16 Marks) - FORECASTING Sara manages one of the Allbirds shoe lines, and is working to improve the

please write answer in notebook

Problem 3 (16 Marks) - FORECASTING Sara manages one of the Allbirds shoe lines, and is working to improve the group's forecasting capabilities so that production will more closely match actual demand (that's the goal, at least!). Monthly sales for the past year are noted in the table below. 1. Develop forecast models using each of the following: a. A five-month moving average (Marks: 2) b. Exponential Smoothing with a smoothing constant equal to 0.2, (seed the model with a January forecast =16,000 ). (Marks: 2 ) c. A weighted moving average using 0.6(t1),0.3(t2) and 0.1(t3) (Marks: 2) 2. Assess Forecast Error a. Calculate the MAPE for each of the 3 forecast models generated in Question 1 above. (Marks: 8) b. Which model should Sara use for her forecasting efforts, and why? (Marks: 2)

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