QUESTION #2 50 MARKS

Martin has recently established a cell phone repair service. Each customer pays an average of $4,000. He has been keenly tracking the number of customers he received over the last 9 weeks as shown here. 17, 21,19,23,18,16,20,22,20

Working to 2 decimal places

a) Develop the 3 week moving average forecast and the MAD 8 marks

b) Develop the 5 week moving average forecast and the MAD 8 marks

c) Use weights of 5 for the most recent week, 3 for the 2^nd most recent, 3 for the 3^rd most recent and 1 for the oldest week to establish a 4 Week Weighted Moving Average, and calculate the MAD.

10 marks

One of Martin's customer, a recent Utech graduate has added another method of forecasting, Exponential Smoothing with Alpha, of 0.4. He however does not have a forecast for week1

d) Develop the exponential smoothing forecast and the MAD 13 marks

e) Of all the forecasting methods above (i.e in a,b,c,d) which is most accurate and Why. 5 marks

f) Using the most accurate method above, what is Martin's estimated gross revenue for week 10

6 marks