IThe following table gives the number of pints of type A blood used at Damascus Hospital in the past6 weeks:Week OfAugust 31September 7September 14September 21September 28October 5Pints Used345389412383366371a) The forecasted demand for the week of October 12 using a 3-week moving average = 373.33 pints(round your response to two decimal places).b) Using a 3-week weighted moving average, with weights of 0.10, 0.35, and 0.55, using 0.55 for the mostrecent week, the forecasted demand for the week of October 12 = pints (round your response to twodecimal places and remember to use the weights in appropriate orderrecent period and smallest weight applies to oldest period.)the largest weight applies to most

Answered: he following table gives the number of…

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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Question

I
The following table gives the number of pints of type A blood used at Damascus Hospital in the past
6 weeks:
Week Of
August 31
September 7
September 14
September 21
September 28
October 5
Pints Used
345
389
412
383
366
371
a) The forecasted demand for the week of October 12 using a 3-week moving average = 373.33 pints
(round your response to two decimal places).
b) Using a 3-week weighted moving average, with weights of 0.10, 0.35, and 0.55, using 0.55 for the most
recent week, the forecasted demand for the week of October 12 = pints (round your response to two
decimal places and remember to use the weights in appropriate order
recent period and smallest weight applies to oldest period.)
the largest weight applies to most

Expert Solution

Step 1: Understand the concept- Forecasting using moving average and weighted moving average

forecasting is a technique of using past data to predict the value in future.

Moving average or simple moving average forecasting is the method , in value is forecasted by taking simple average of past data. It's given by:

$M o v i n g space a v e r a g e space equals fraction numerator A subscript 1 plus A subscript 2.................... A subscript n over denominator n end fraction$

where, A1, A2 are the values and n is the number of values. For 3 period moving average, n =3

Weighted moving average involved assignment of weights to the past values and forecast the future value. It is given by:

$W e i g h t e d space M o v i n g space A v e r a g e space equals space W subscript 1 A subscript 1 plus W subscript 2 A subscript 2........ W subscript n A subscript n$

Where, W1, W2, Wn are the weights.