Your company has the following demand data for the past 12 months. Month Demand (S) 1...
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Your company has the following demand data for the past 12 months. Month Demand (S) 1 2 3 4 5 6 7 8 9 10 11 12 17000 23000 21000 17500 26000 35500 34000 31000 39500 48000 44000 45500 1. Forecast calculations (15 points). The naïve forecast for period (month) 13 would be 45500. Let's look at additional forecast methods to try to improve on this. a. What is the four month moving average forecast for period 13? (5 points) Why might four months have been chosen as the period for a moving average forecast? (2 points) b. Using a different method, the forecast for period 12 had been 46000. Choose a value of alpha and calculate the exponential smoothing forecast for period 13. Explain why you chose the alpha you did. (6 points) c. There are several time series forecast methods: naïve, moving average, weighted moving average, exponential smoothing, trend, seasonality, and others. Which forecast method would likely best fit these data? Why did you choose the method that you did? (2 points) Your company has the following demand data for the past 12 months. Month Demand (S) 1 2 3 4 5 6 7 8 9 10 11 12 17000 23000 21000 17500 26000 35500 34000 31000 39500 48000 44000 45500 1. Forecast calculations (15 points). The naïve forecast for period (month) 13 would be 45500. Let's look at additional forecast methods to try to improve on this. a. What is the four month moving average forecast for period 13? (5 points) Why might four months have been chosen as the period for a moving average forecast? (2 points) b. Using a different method, the forecast for period 12 had been 46000. Choose a value of alpha and calculate the exponential smoothing forecast for period 13. Explain why you chose the alpha you did. (6 points) c. There are several time series forecast methods: naïve, moving average, weighted moving average, exponential smoothing, trend, seasonality, and others. Which forecast method would likely best fit these data? Why did you choose the method that you did? (2 points)
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Answer rating: 100% (QA)
a The fourmonth moving average forecast for period 13 can be calculated by averaging the demand values for months 10 11 12 and 13 Moving Average Forec... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
Posted Date:
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