answer part d only Historical demand for a product is as follows. The sales manager wants to test various forecastingmethods to see which method works better during this period.MonthDemandJanuary110February130March150April170May160June180July140August130September140a. Forecast April through September using a three-month moving average (3-MAD).b. Use simple exponential smoothing with an alpha of 0.3 to estimate April through September,using the average of January through March as the initial forecast for April.c. Use 3-MAD from part (a) above to decide which method produced the better forecast overthe six-month period.d. Follow part (b) above but using an alpha of 0.8 this time. Discuss the forecasting errorsproduced by using the two different exponential smoothing constants.

Absolute error is the error between the forecasted value and the actual value of the set.

Answered: d. Follow part (b) above but using an…

d. Follow part (b) above but using an alpha of 0.8 this time. Discuss the forecasting errors produced by using the two different exponential smoothing constants.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section: Chapter Questions

Problem 34P: A small computer chip manufacturer wants to forecast monthly ozperating costs as a function of the...

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