The demand (in number of units) for Apple iPad over the past 6 months at BestBuy is summarized below. Month Nov 2019 Dec 2019 Demand 45 48 Jan 2020 50 Feb 2020 Mar 2020 Apr 2020 42 46 51 Consider the following three forecasting methods: • Two-month weighted moving average, with weights 6 and 2 (more weight assigned to more recent data) Exponential smoothing with a = 0.7. Let the initial forecast for Nov 2019 be 46. • A trend line projection in the form ŷ = a+bx . To simplify computations, transform the value of x (time) to simpler numbers – designate Nov 2019 as x=1, Dec 2019 as x= 2, etc. (a ) For each of the above methods, forecast the demand of Apple iPad for May 2020. (b) Consider only the two-month weighted moving average method, compute the MAD measure and the MSE measure using the data from Jan 2020. (c) Use the trend line to forecast the demand of Apple iPad for Dec 2020. Give your opinion regarding the reliability of the forecast.

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The demand (in number of units) for Apple iPad over the past 6 months at BestBuy is
summarized below.
Month
Nov 2019
Dec 2019
Demand
45
48
Jan 2020
50
Feb 2020
Mar 2020
Apr 2020
42
46
51
Consider the following three forecasting methods:
• Two-month weighted moving average, with weights 6 and 2 (more weight assigned
to more recent data)
Exponential smoothing with a = 0.7. Let the initial forecast for Nov 2019 be 46.
• A trend line projection in the form ŷ = a+bx . To simplify computations,
transform the value of x (time) to simpler numbers – designate Nov 2019 as x=1,
Dec 2019 as x= 2, etc.
(a ) For each of the above methods, forecast the demand of Apple iPad for May 2020.
(b) Consider only the two-month weighted moving average method, compute the
MAD measure and the MSE measure using the data from Jan 2020.
(c) Use the trend line to forecast the demand of Apple iPad for Dec 2020.
Give your opinion regarding the reliability of the forecast.
Transcribed Image Text:The demand (in number of units) for Apple iPad over the past 6 months at BestBuy is summarized below. Month Nov 2019 Dec 2019 Demand 45 48 Jan 2020 50 Feb 2020 Mar 2020 Apr 2020 42 46 51 Consider the following three forecasting methods: • Two-month weighted moving average, with weights 6 and 2 (more weight assigned to more recent data) Exponential smoothing with a = 0.7. Let the initial forecast for Nov 2019 be 46. • A trend line projection in the form ŷ = a+bx . To simplify computations, transform the value of x (time) to simpler numbers – designate Nov 2019 as x=1, Dec 2019 as x= 2, etc. (a ) For each of the above methods, forecast the demand of Apple iPad for May 2020. (b) Consider only the two-month weighted moving average method, compute the MAD measure and the MSE measure using the data from Jan 2020. (c) Use the trend line to forecast the demand of Apple iPad for Dec 2020. Give your opinion regarding the reliability of the forecast.
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