The table below shows the demand for a new aftershave in a shop for each of...

 

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The table below shows the demand for a new aftershave in a shop for each of the last 7 months. Month 1 2 3 4 5 6 7 Demand 23 29 33 40 41 43 49 a) Calculate a two month moving average for months two to seven. What would be your forecast for the demand in month eight? b) Apply exponential smoothing with a smoothing constant of 0.1 to derive a forecast for the demand in month eight. c) Which of the two forecasts for month eight do you prefer based on the Mean Square Error [10] [10] [5] QUESTION 2 Assume you have 12 months of sales data as below: 1 2 3 4 5 6 7 8 9 10 11 12 152 176 160 192 220 272 256 280 300 280 312 328 If Sz = y1 = 152, bi-(у2-у)-24, a=0.2, and B=0.3 a) What is the forecast for period 13 based on double exponential smoothing? Show all working. b) Repeat the computations in r and copy and paste your code and results as output.[10] [15] The table below shows the demand for a new aftershave in a shop for each of the last 7 months. Month 1 2 3 4 5 6 7 Demand 23 29 33 40 41 43 49 a) Calculate a two month moving average for months two to seven. What would be your forecast for the demand in month eight? b) Apply exponential smoothing with a smoothing constant of 0.1 to derive a forecast for the demand in month eight. c) Which of the two forecasts for month eight do you prefer based on the Mean Square Error [10] [10] [5] QUESTION 2 Assume you have 12 months of sales data as below: 1 2 3 4 5 6 7 8 9 10 11 12 152 176 160 192 220 272 256 280 300 280 312 328 If Sz = y1 = 152, bi-(у2-у)-24, a=0.2, and B=0.3 a) What is the forecast for period 13 based on double exponential smoothing? Show all working. b) Repeat the computations in r and copy and paste your code and results as output.[10] [15]

Answer rating: 100% (QA)

31 two month average Month Demand Forecast Error Abserror 1 23 2 29 3 33 26 7 7 ... View the full answer