Question $2$

$15$ Marks

Use the data set below to answer the questions that follow.

$\backslash$table$[[$Period$,$Demand Sales Volume$],[1,1000],[2,1200],[3,1450],[4,1650],[5,1700],[6,1850]]$

$2\mathrm{.}1$ Find the four$-$period simple moving average forecasts for Periods $5$ and $6.$ Thereafter, find the four$-$period weighted moving average forecasts for Periods $5$ and $6$ using weights of $0\mathrm{.}05,0\mathrm{.}25,0\mathrm{.}30,$ and $0\mathrm{.}40$ from the earliest period to the latest period, respectively.

$(4$ Marks$)$

$2\mathrm{.}2$ Which set of forecasts is more accurate, the simple moving average forecasts or the weighted moving average forecasts? Critically discuss your answer, referring to why this set of forecasts will be more accurate in this case as well as if this type of forecast will always be more accurate.

$(11$ Marks$)$