Need assistance with question 2 iv, v. I already got help with i, ii, iii B. Juicy-Juice Ltd. is planning to increase its juice supply for the fiscal year 2021 – 2022. With the expectedincrease in demand, it is projected that there is a need for additional space. Management must decidewhether to rent a large building or construct a medium factory space.If they rent a large building and the demand is low, the net present value after deducting for building costswill be $230,000. If the demand is high, the company can continue using the old factory or rent anadditional building to meet the current need. Renting an additional building would have a net present valueof $301,000 and using the old factory would have a net present value of $530,000. The probability of highdemand is 0.45 while the probability of low demand is 0.55.If a medium factory was constructed and the demand is high, the estimated net present value is $320, 000.If the demand is moderate, the net present value is $195, 000. If the demand turns out to be low, the netpresent value will be (300,000). The probability that the demand will be high, moderate, or low isestimated to be 0.50, 0.25 and 0.25, respectively.(i) Draw the decision tree to represent the above information.(ii) Calculate the expected values of each course of action.(iii) Using the result from (ii) decide which course of action the Juicy-Juice management team should take.Question 2Juicy-Juice Ltd. wants to predict their sales for the fiscal year 2021, and the financial team was provided withthe following table with actual sales value in thousands of dollars for the first half of the year:Actual SalesMonth($, 000)JanuaryFebruary128112March186AprilMay218142June135Writing all answers to the nearest whole number:(i) Compute a three – month simple moving average forecast for the monthly sales from April to July 2021.(ii) If the actual sales value for July is $159,000, what is the percentage error in the forecast?(iii) Compute a three- month weighted moving average forecast for the monthly sales from April to July 2021,using the weights: w, =0.55 , w, = 0.30 , w, =0.15(iv) Compute the exponential smoothing forecast from February to August using a = 0.4 and an initialforecast for January $130,000.(v) Calculate the Mean Absolute Deviation (MAD) for each forecasting method.5

Question

Accepted Answer

iv.
Exponential Smoothing:
Given that α=0.4.
Initial forecast for January is $130,000.…

Juicy-Juice Ltd. wants to predict their sales for the fiscal year 2021, and the financial team was provided with the following table with actual sales value in thousands of dollars for the first half of the year: Actual Sales Month (S, 000) January 128 February 112