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Step 1 of 4: Determine the three-period moving average for the next time period. If necessary, round your answer to one decimal place.   Step 2 of 4: Determine the three-period weighted moving average for the next time period with weights of 33 (most recent), 22 (second latest time period), and 11 (oldest time period). If necessary, round your answer to one decimal place.   Step 3 of 4: Determine the exponential smoothing forecast for the next time period using a smoothing constant of 0.500.50. If necessary, round your answer to one decimal place.   Step 4 of 4: Which forecasting method is best and why?

Step 1 of 4: Determine the three-period moving average for the next time period. If necessary, round your answer to one decimal place.   Step 2 of 4: Determine the three-period weighted moving average for the next time period with weights of 33 (most recent), 22 (second latest time period), and 11 (oldest time period). If necessary, round your answer to one decimal place.   Step 3 of 4: Determine the exponential smoothing forecast for the next time period using a smoothing constant of 0.500.50. If necessary, round your answer to one decimal place.   Step 4 of 4: Which forecasting method is best and why?

Practical Management Science
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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Step 1 of 4: Determine the three-period moving average for the next time period. If necessary, round your answer to one decimal place.
 
Step 2 of 4: Determine the three-period weighted moving average for the next time period with weights of 33 (most recent), 22 (second latest time period), and 11 (oldest time period). If necessary, round your answer to one decimal place.
 
Step 3 of 4: Determine the exponential smoothing forecast for the next time period using a smoothing constant of 0.500.50. If necessary, round your answer to one decimal place.
 
Step 4 of 4: Which forecasting method is best and why? 
 
 
 
 
 
 
**Monthly Profit of an Auto Repair Shop** This table presents the monthly profit for an auto repair shop over a period from January 2014 to September 2014. The data is displayed with the respective months and the corresponding profits in dollars. | Month | Profit ($) | |---------|------------| | Jan-14 | 15,810 | | Feb-14 | 15,960 | | Mar-14 | 14,755 | | Apr-14 | 16,814 | | May-14 | 18,463 | | Jun-14 | 17,180 | | Jul-14 | 19,144 | | Aug-14 | 18,435 | | Sep-14 | 20,218 | The table shows fluctuations in profit, with March 2014 having the lowest profit of $14,755 and September 2014 showing the highest profit of $20,218.
Transcribed Image Text:**Monthly Profit of an Auto Repair Shop** This table presents the monthly profit for an auto repair shop over a period from January 2014 to September 2014. The data is displayed with the respective months and the corresponding profits in dollars. | Month | Profit ($) | |---------|------------| | Jan-14 | 15,810 | | Feb-14 | 15,960 | | Mar-14 | 14,755 | | Apr-14 | 16,814 | | May-14 | 18,463 | | Jun-14 | 17,180 | | Jul-14 | 19,144 | | Aug-14 | 18,435 | | Sep-14 | 20,218 | The table shows fluctuations in profit, with March 2014 having the lowest profit of $14,755 and September 2014 showing the highest profit of $20,218.
1. Comparing the forecasts, Weighted Moving Average is best since it has the highest forecast. 2. Comparing the forecasts, Weighted Moving Average is best since it has the forecast closest to the latest actual observation. 3. Comparing the MAD scores, Moving Average is best since the MAD score is highest. 4. Comparing the MAD scores, Exponential Smoothing is best since the MAD score is lowest.
Transcribed Image Text:1. Comparing the forecasts, Weighted Moving Average is best since it has the highest forecast. 2. Comparing the forecasts, Weighted Moving Average is best since it has the forecast closest to the latest actual observation. 3. Comparing the MAD scores, Moving Average is best since the MAD score is highest. 4. Comparing the MAD scores, Exponential Smoothing is best since the MAD score is lowest.
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