6) The table below shows the demand for a new aftershave in a shop for cach of the last 7 months. 4 Month 1 2 3 6 7 Demand 23 29 33 40 41 | 43 49 (a) Calculate a two-month moving average for months two to eight. (b) Apply exponential smoothing with a smoothing constant of 0.1 to derive a forecast for the demand in month eight. (c) Calculate the MSD for the two forecasts. Which of the two forecasts for month eight do you prefer and why? A gardener wants to develop a forecast for next year's quarterly sales of cactus trees. He has collected quarterly sales for the past two years and expects total sales for next year to be 500 cactus trees. The data clearly exhibit seasonality. Cactus Trees Sold Season Year 1 Year 2 Fall 105 112 Winter 84 96 Spring 182 173 Summer 113 110 Total 484 491 (d) How much can he expect to sell during each quarter of next year accounting for seasonality?

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6) The table below shows the demand for a new aftershave in a shop for cach of the last 7 months.
4
Month
1
2
3
6
7
Demand
23
29
33
40
41
| 43
49
(a) Calculate a two-month moving average for months two to eight.
(b) Apply exponential smoothing with a smoothing constant of 0.1 to derive a forecast for the
demand in month eight.
(c) Calculate the MSD for the two forecasts. Which of the two forecasts for month eight do you
prefer and why?
A gardener wants to develop a forecast for next year's quarterly sales of cactus trees. He has
collected quarterly sales for the past two years and expects total sales for next year to be 500
cactus trees. The data clearly exhibit seasonality.
Cactus Trees Sold
Season
Year 1
Year 2
Fall
105
112
Winter
84
96
Spring
182
173
Summer
113
110
Total
484
491
(d) How much can he expect to sell during each quarter of next year accounting for
seasonality?
Transcribed Image Text:6) The table below shows the demand for a new aftershave in a shop for cach of the last 7 months. 4 Month 1 2 3 6 7 Demand 23 29 33 40 41 | 43 49 (a) Calculate a two-month moving average for months two to eight. (b) Apply exponential smoothing with a smoothing constant of 0.1 to derive a forecast for the demand in month eight. (c) Calculate the MSD for the two forecasts. Which of the two forecasts for month eight do you prefer and why? A gardener wants to develop a forecast for next year's quarterly sales of cactus trees. He has collected quarterly sales for the past two years and expects total sales for next year to be 500 cactus trees. The data clearly exhibit seasonality. Cactus Trees Sold Season Year 1 Year 2 Fall 105 112 Winter 84 96 Spring 182 173 Summer 113 110 Total 484 491 (d) How much can he expect to sell during each quarter of next year accounting for seasonality?
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