Question: Using a moving average with three periods, determine the demand for vacuum cleaners for next February. Using a weighted moving average with three periods, determine

Using a moving average with three periods, determine the demand for vacuum cleaners for next February.

Using a weighted moving average with three periods, determine the demand for vacuum cleaners for February. Use

3, 2,

and

1

for the weights of the most recent, second most recent, and third most recent periods, respectively. For example, if you were forecasting the demand for February, November would have a weight of

1,

December would have a weight of

2,

and January would have a weight of

3 .

Using MAD, determine which is the better forecast.

What other factors might Parker consider in forecasting sales?

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