The following table shows the actual demand observed over the last 11 years: Year 1 2 3 4 5 6 7 8 9 10 11 Demand 6 8 4 7 11 7 13 12 10 13 8 This exercise contains only parts b, c, and d. Part 2 b) Using the 3-year moving average, provide the forecast from periods 4 through 12 (round your responses to one decimal place). Part 3 c) Using the 3-year weighted moving average with weights 0.10, 0.30, and 0.60, using 0.60 for the most recent period, provide the forecast from periods 4 through 12 (round your responses to two decimal places). Part 4 d) Mean absolute deviation for the forecast developed using the 3-year moving average is 2.26 and for the 3-year weighted moving average is 2.78. Based on this information, the better forecast is achieved using the ▼ 3-year moving average weighted moving average approach.
The following table shows the actual demand observed over the last 11 years: Year 1 2 3 4 5 6 7 8 9 10 11 Demand 6 8 4 7 11 7 13 12 10 13 8 This exercise contains only parts b, c, and d. Part 2 b) Using the 3-year moving average, provide the forecast from periods 4 through 12 (round your responses to one decimal place). Part 3 c) Using the 3-year weighted moving average with weights 0.10, 0.30, and 0.60, using 0.60 for the most recent period, provide the forecast from periods 4 through 12 (round your responses to two decimal places). Part 4 d) Mean absolute deviation for the forecast developed using the 3-year moving average is 2.26 and for the 3-year weighted moving average is 2.78. Based on this information, the better forecast is achieved using the ▼ 3-year moving average weighted moving average approach.
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...
Related questions
Question
The following table shows the actual demand observed over the last 11 years:
|
Year |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
|
Demand |
6 |
8 |
4 |
7 |
11 |
7 |
13 |
12 |
10 |
13 |
8 |
This exercise contains only parts b, c, and d.
Part 2
b) Using the 3-year moving average, provide the
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Part 3
c) Using the 3-year weighted moving average with weights
0.10,
0.30, and
0.60, using
0.60 for the most recent period, provide the forecast from periods 4 through 12 (round your responses to two decimal places).
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Part 4
d) Mean absolute deviation for the forecast developed using the 3-year moving average is
2.26 and for the 3-year weighted moving average is
2.78. Based on this information, the better forecast is achieved using the
▼
3-year moving average
weighted moving average
approach.
Transcribed Image Text:### Demand Forecasting Exercise
The table below shows the actual demand observed over the last 11 years:
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 |
|--------|---|---|---|---|----|----|----|----|----|----|----|
| Demand | 6 | 8 | 4 | 7 | 11 | 7 | 13 | 12 | 10 | 13 | 8 |
This exercise contains only parts b, c, and d.
#### Part b: 3-Year Moving Average
Using the 3-year moving average, provide the forecast from periods 4 through 12 (round your responses to one decimal place).
| Year | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
|----------|---|---|---|---|---|---|----|----|----|
| Forecast | | | | | | | | | |
#### Part c: 3-Year Weighted Moving Average
Using the 3-year weighted moving average with weights 0.10, 0.30, and 0.60, using 0.60 for the most recent period, provide the forecast from periods 4 through 12 (round your responses to two decimal places).
| Year | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
|----------|---|---|---|---|---|---|----|----|----|
| Forecast | | | | | | | | | |
#### Part d: Mean Absolute Deviation
The mean absolute deviation for the forecast developed using the 3-year moving average is 2.26 and for the 3-year weighted moving average is 2.78. Based on this information, the better forecast is achieved using the
<select>
<option value="3-year moving average">3-year moving average</option>
<option value="weighted moving average">weighted moving average</option>
</select>
approach.
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