a. Forecast April through September using a three-month moving average. b. Use simple exponential smoothing with an alpha of 0.20 to estimate April through September, using the average of January through March as the initial forecast for April. c-1. Calculate MAD for Three-month moving average and Exponential smoothing. c-2. Use MAD to decide which method produced the better forecast over the six-month period.
a. Forecast April through September using a three-month moving average. b. Use simple exponential smoothing with an alpha of 0.20 to estimate April through September, using the average of January through March as the initial forecast for April. c-1. Calculate MAD for Three-month moving average and Exponential smoothing. c-2. Use MAD to decide which method produced the better forecast over the six-month period.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Here are the actual tabulated demands for an item for a nine-month period (January through September). Your supervisor wants to test two
| MONTH | ACTUAL |
| January | 120 |
| February | 145 |
| March | 146 |
| April | 171 |
| May | 154 |
| June | 182 |
| July | 138 |
| August | 135 |
| September | 146 |
a. Forecast April through September using a three-month moving average.
b. Use simple exponential smoothing with an alpha of 0.20 to estimate April through September, using the average of January through March as the initial forecast for April.
c-1. Calculate MAD for Three-month moving average and Exponential smoothing.
c-2. Use MAD to decide which method produced the better forecast over the six-month period.
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