The quarterly demand for smartphones at a retailer is as show.YearQuarterDemand1I5131II9321III15091IV19022I6932II11632III18572IV2469 Forecast the quarter 1 demand for year 3 using the following models:4-quarter simple moving average. Simple exponential smoothing with α = 0.1. We assume that the forecasted value of quarter 1 is 500. Which method is the most accurate and why?

Answered: Forecast the quarter 1 demand for year…

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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The quarterly demand for smartphones at a retailer is as show.

Year	Quarter	Demand
1	I	513
1	II	932
1	III	1509
1	IV	1902
2	I	693
2	II	1163
2	III	1857
2	IV	2469

Forecast the quarter 1 demand for year 3 using the following models:

4-quarter simple moving average.

Simple exponential smoothing with α = 0.1. We assume that the forecasted value of quarter 1 is 500.

Which method is the most accurate and why?

Expert Solution

Step 1 Introduction:

As per the question, I would determine the forecast for quarter 1 for year 3, Here, I would apply two techniques, these 4 quarters' simple moving average and the simple exponential smoothing technique.

Given the dataset stated below,

year	quarter	demand
1	I	513
1	II	932
1	III	1509
1	IV	1902
2	I	693
2	II	1163
2	III	1857
2	IV	2469

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