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Here are the actual tabulated demands for an item for a nine-month period (January through...

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Accounting

Here are the actual tabulated demands for an item for a nine-month period (January through September). Your supervisor wants to test two forecasting methods to see which method was better over this period.

MONTH ACTUAL

January 110 February 130 March 150 April 170 May 160 June 180 July 140 August 130 September 140

A. Forecast April through September using a three-month moving average.

B. Use simple exponential smoothing with an alpha of 0.3 to estimate April through September, using the average of January through March as initial forecast for April.

C. Use MAD to decide which method produced the better forecast over the six-month period.

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