Question 3 20 Marks Consider the data set below to answer the following questions: 3.1 Find the four-period simple moving average forecasts for Periods 5 and 6. (3 Marks) Period Demand Sales Volume 1000 2 1200 3 1450 4 1650 5 1700 6 1850 3.2 Find the four-period weighted moving average forecasts for Periods 5 and 6 by using weights of 0.05, 0.25, 0.30, and 0.40 from the earliest period to the latest period, respectively. (3 Marks) 3.3 Identify the set of forecasts that is more accurate - the simple moving average forecasts or the weighted moving average forecasts? Motivate your answer. (2 Marks) 3.4 According to your knowledge, which type of forecast will always be more accurate? Motivate your answer. (2 Marks) 3.5 Calculate the forecast (round to nearest whole number) for period four using exponential smoothing and a = 0.3. Use a tracking signal to determine if there is a bias problem with the forecasting method. (Assume the control limit for the tracking signal is + 3). (10 marks) Period Demand Forecast 1 1620 1590 2 1680 3 1720 4 1770 End of Question 3