QUESTION 2: [3 + 4 + 8] = 15 MARKS

A) Which forecasting technique would you consider for technological forecasts?

B) What are reasonable criteria for selecting one time-series method over another?

C) A sales manager wants to forecast monthly sales of the machines the company makes using the following monthly sales data.

Month	Balance
1	$3,803
2	$2,558
3	$3,469
4	$3,442
5	$2,682
6	$3,469
7	$4,442
8	$3,728

A) Use the information in the Table to: Forecast the monthly sales of the machine for month 9, using the three-month moving-average method.

B ) Use the 3-month weighted moving-average method to calculate the forecast for month 9. The weights are 0.60, 0.30, and 0.10, where 0.60 refers to the most recent demand.

C) If the forecast for period 7 is $4,300, what is the forecast for period 9 using exponential smoothing with an alpha equal to 0.30?

D) What is the forecast for period 9 using a naive forecast ?