Question #2

Month	Demand
1	45
2	48
3	43
4	48
5	49
6	54
7	47
8	50
9	46
10	47

Using the table above, calculate two forecasts using the following method:-

1. First, for periods 4 through 10, develop the exponentially smoothed forecasts using a forecast for period 3 (F3) of 45.0 and an alpha of 0.4. [3 marks]
2. ii. Calculate the weighted moving average for periods 4 through 10, using weights of .70, .20, and .10, with 0.70 applied to the most recent data. [3 marks]
3. iii. Calculate the mean absolute deviation (MAD) for each forecasting procedure. Which forecasting procedure would you select? Why? [6 marks]