The Polish General%u2019s Pizza Parlor is a small restaurant catering to patrons with a taste for European
Question:
The Polish General%u2019s Pizza Parlor is a small restaurant catering to patrons with a taste for European pizza. One of its specialties is Polish Prize pizza. The manager must forecast weekly demand for these special pizzas so that he can order pizza shells weekly. Recently, demand has been as follows:
Week _______________Pizzas
June 4...........................50
June 11..........................65
June18..........................52
June 25..........................56
July2.............................55
July 9............................60
a. Forecast the demand for pizza for June 25 through July 16 by using the simple moving average method with n = 3. Then, repeat the forecast by using the weighted moving average method with n = 3 and weights of 0.50, 0.30, and 0.20, with 0.50 applying to the most recent demand.
b. Calculate the MAD for each model. Which forecast do you prefer? Why?
Step by Step Answer:
Understanding Financial Accounting
ISBN: 9781119406921
2nd Canadian Edition
Authors: Christopher D. Burnley