Question: This is an excel assignment need to use Forecasting (Moving averages, exponential smoothing method). Three years of monthly lawn-maintenance expenses ($) for a six-unit apartment
This is an excel assignment need to use Forecasting (Moving averages, exponential smoothing method).
| Three years of monthly lawn-maintenance expenses ($) for a six-unit apartment house in southern Florida follow. | ||||||||||||
| Month | Year 1 | Year 2 | Year 3 | |||||||||
| January | 170 | 180 | 195 | |||||||||
| February | 180 | 205 | 210 | |||||||||
| March | 205 | 215 | 230 | |||||||||
| April | 230 | 245 | 280 | |||||||||
| May | 240 | 265 | 290 | |||||||||
| June | 315 | 330 | 390 | |||||||||
| July | 360 | 400 | 420 | |||||||||
| August | 290 | 335 | 330 | |||||||||
| September | 240 | 260 | 290 | |||||||||
| October | 240 | 270 | 295 | |||||||||
| November | 230 | 255 | 280 | |||||||||
| December | 195 | 220 | 250 | |||||||||
| a) | Using a 3-mth Moving average, an exponential smoothing model with a smoothing constant of 0.1, and a | |||||||||||
| linear trend model, generate a forecast for January of Year 4. | ||||||||||||
| b) | Which model would you adopt in a) and why? | |||||||||||
| c) | Which period experiences the greatest seasonal impact? | |||||||||||
| d) | Discuss the results of your linear trend model. | |||||||||||
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
Study Help