Question $1$

a$)$ Computing the MAD, The RSFE, and the TS from Actual Data and the Corresponding Demand

Forecast given below.

Month Actual Sales Demand

Forecast

$11210$

$21013$

$31511$

$4912$

$51310$

$61815$

$71416$

b$)$ Comment on your results.

Question $2$

The historical demand for a product is as given in the table below:

DEMAND

January $12$

February $11$

March $15$

April $12$

May $16$

June $15$

a$)$ Using single exponential smoothing with $\backslash$alpha $=0\mathrm{.}2$ and a June forecast $13,$ find the July

forecast. Make whatever assumptions you wish.

b$)$ Using simple linear regression analysis, calculate the regression equation for the

preceding demand data.

c$)$ Using the regression equation in b$,$ calculate the forecast for July