a. Month Demand 1 45 2 48 3 43 4 48 5 49 6 54 7 47 8 50 9 46 10 47 Using the table above, calculate two forecasts using the following method:- i. ii. iii. First, for periods 4 through 10, develop the exponentially smoothed forecasts using a forecast for period 3 (F3) of 45.0 and an alpha of 0.4. Calculate the weighted moving average for periods 4 through 10, using weights of .70, .20, and .10, with 0.70 applied to the most recent data. Calculate the mean absolute deviation (MAD) for each forecasting procedure. Which forecasting procedure would you select? Why?
a. Month Demand 1 45 2 48 3 43 4 48 5 49 6 54 7 47 8 50 9 46 10 47 Using the table above, calculate two forecasts using the following method:- i. ii. iii. First, for periods 4 through 10, develop the exponentially smoothed forecasts using a forecast for period 3 (F3) of 45.0 and an alpha of 0.4. Calculate the weighted moving average for periods 4 through 10, using weights of .70, .20, and .10, with 0.70 applied to the most recent data. Calculate the mean absolute deviation (MAD) for each forecasting procedure. Which forecasting procedure would you select? Why?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.7: Exponential Smoothing Models
Problem 25P: The file P13_25.xlsx contains the quarterly numbers of applications for home mortgage loans at a...
Related questions
Question
![a.
Month
Demand
1
45
2
48
3
43
4
48
5
49
6
54
7
47
8
50
9
46
10
47
Using the table above, calculate two forecasts using the following method:-
i.
ii.
iii.
First, for periods 4 through 10, develop the exponentially smoothed forecasts
using a forecast for period 3 (F3) of 45.0 and an alpha of 0.4.
Calculate the weighted moving average for periods 4 through 10, using weights of
.70, .20, and .10, with 0.70 applied to the most recent data.
Calculate the mean absolute deviation (MAD) for each forecasting procedure.
Which forecasting procedure would you select? Why?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6b08da52-4bb7-4277-bfdc-384dc41c2f64%2F5bfe1a97-2335-4c84-92c7-6db629a0f8b9%2Fg7p38p9_processed.png&w=3840&q=75)
Transcribed Image Text:a.
Month
Demand
1
45
2
48
3
43
4
48
5
49
6
54
7
47
8
50
9
46
10
47
Using the table above, calculate two forecasts using the following method:-
i.
ii.
iii.
First, for periods 4 through 10, develop the exponentially smoothed forecasts
using a forecast for period 3 (F3) of 45.0 and an alpha of 0.4.
Calculate the weighted moving average for periods 4 through 10, using weights of
.70, .20, and .10, with 0.70 applied to the most recent data.
Calculate the mean absolute deviation (MAD) for each forecasting procedure.
Which forecasting procedure would you select? Why?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 1 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Practical Management Science](https://www.bartleby.com/isbn_cover_images/9781337406659/9781337406659_smallCoverImage.gif)
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
![Contemporary Marketing](https://www.bartleby.com/isbn_cover_images/9780357033777/9780357033777_smallCoverImage.jpg)
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing
![Practical Management Science](https://www.bartleby.com/isbn_cover_images/9781337406659/9781337406659_smallCoverImage.gif)
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
![Contemporary Marketing](https://www.bartleby.com/isbn_cover_images/9780357033777/9780357033777_smallCoverImage.jpg)
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing