The following table shows the actual demand observed over the last 11 years: Year 1 2 3
Question:
The following table shows the actual demand observed over the last 11 years:
Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 |
Demand | 7 | 10 | 6 | 10 | 12 | 9 | 12 | 12 | 9 | 13 | 6 |
This exercise contains only parts b, c, and d.Part 2b) Using the 3-year moving average, provide the forecast from periods 4 through 12 (round your responses to one decimal place).
Year | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Forecast | enter your response here | enter your response here | enter your response here | enter your response here | enter your response here | enter your response here | enter your response here | enter your response here | enter your response here |
Part 3c) Using the 3-year weighted moving average with weights
0.10,
0.30,
and
0.60,
using
0.60
for the most recent period, provide the forecast from periods 4 through 12 (round your responses to two decimal places).
Year | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Forecast | enter your response here | enter your response here | enter your response here | enter your response here | enter your response here | enter your response here | enter your response here | enter your response here | enter your response here |
Part 4d) Mean absolute deviation for the forecast developed using the 3-year moving average is
2.24
and for the 3-year weighted moving average is
2.73.
Based on this information, the better forecast is achieved using the
3-year moving average
weighted moving average
approach.