Quantitative analysis

1. Data collected on the yearly demand for 50-pound bags of fertilizer at Wallace Garden Supply are shown in the following table. Develop a three-year moving average to forecast sales. Then estimate demand again with a weighted moving average in which sales in the most recent year are given a weight of 2 and sales in the other two years are each given a weight of 1. Which method do you think is best? Year Demand for Fertilizer (1,000s of bags) ._. M C) ._. J: l _ __ " \" n _ 2. Sales of portable air conditioners have grown steadily during the past ve years: The sales manager had predicted, before the business started, that year 1's sales would be 410 air conditioners. Using exponential smoothing with a weight of a = 0.30, develop a forecast for year 6