3. [13 marks] A company is interested in forecasting demand for a product. They have reason...

90.2K

Verified Solution

Question

Statistics

3. [13 marks] A company is interested in forecasting demand fora product. They have reason to believe that the demand is notaffected by any seasonal changes and that it does not increase ordecrease systematically over time. They have data for the last 9periods (below).
Period
1
2
3
4
5
6
7
8
9
Demand
230
210
220
250
300
280
240
230
200
In each part of this question, show your work: show the equationyou use, how you plug in, and your final answer. Please do notround any answers. Hint: see lecture 22 example3.
a) [3 marks] Use a 4-period moving average to forecast demandfor period 10.
b) [3 marks] Use a 3-period weighted moving average to forecastdemand for period 10 using weights of 0.6, 0.3, and 0.1,respectively. Show your work.
c) [3 marks] Suppose the forecast for period 9 was 235 units.Use exponential smoothing with a smoothing constant of 0.6 toforecast demand for period 10.
d) [4 marks] Suppose the actual demand in period 10 was 211units. Which of your forecasting methods from parts a through cperformed best, and why? Please provide a table similar to the oneshown on slide 48 of lecture 22, and make your conclusion based onyour table.

Answer & Explanation Solved by verified expert

3.6 Ratings (633 Votes)

AnswerGiven ThatA company is interested in forecasting demand for a productThey have reason to believe that the demand is not affected by anyseasonal changes and that it does not increase or decreasesystematically over timesolutionperioddemand123022103220425053006280724082309200a 3 marks Use a 4period moving average to forecastdemand for period 10Forecast using 4 period moving averageF5 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member