The demand (in number of units) for Apple iPad over the past 6 months at BestBuy is summarized below. Month Demand Nov 2019 45 Dec 2019 48 Jan 2020 50 Feb 2020 42 Mar 2020 46 Apr 2020 51 Consider the following three forecasting methods: Two-month weighted moving average, with weights 6 and 2 (more weight assigned to more recent data) • Exponential smoothing with a = 0.7. Let the initial forecast for Nov 2019 be 46. • A trend line projection in the form ŷ = a+bx . To simplify computations, transform the value of x (time) to simpler numbers – designate Nov 2019 as x=1, Dec 2019 as x = 2, etc.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.6: Moving Averages Models
Problem 19P: The file P13_19.xlsx contains the weekly sales of a particular brand of paper towels at a...
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Use the trend line to forecast the demand of Apple iPad for Dec 2020.
Give your opinion regarding the reliability of the forecast.

The demand (in number of units) for Apple iPad over the past 6 months at BestBuy is
summarized below.
Month
Demand
Nov 2019
45
Dec 2019
48
Jan 2020
50
Feb 2020
42
Mar 2020
46
Apr 2020
51
Consider the following three forecasting methods:
Two-month weighted moving average, with weights 6 and 2 (more weight assigned
to more recent data)
• Exponential smoothing with a = 0.7. Let the initial forecast for Nov 2019 be 46.
• A trend line projection in the form ŷ = a+bx . To simplify computations,
transform the value of x (time) to simpler numbers – designate Nov 2019 as x=1,
Dec 2019 as x = 2, etc.
Transcribed Image Text:The demand (in number of units) for Apple iPad over the past 6 months at BestBuy is summarized below. Month Demand Nov 2019 45 Dec 2019 48 Jan 2020 50 Feb 2020 42 Mar 2020 46 Apr 2020 51 Consider the following three forecasting methods: Two-month weighted moving average, with weights 6 and 2 (more weight assigned to more recent data) • Exponential smoothing with a = 0.7. Let the initial forecast for Nov 2019 be 46. • A trend line projection in the form ŷ = a+bx . To simplify computations, transform the value of x (time) to simpler numbers – designate Nov 2019 as x=1, Dec 2019 as x = 2, etc.
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