Forecast the quarter 1 demand for year 3 using the following models: 4-quarter simple moving average. Simple exponential smoothing with α = 0.1. We assume that the forecasted value of quarter 1 is 500. Which method is the most accurate and why?
Forecast the quarter 1 demand for year 3 using the following models: 4-quarter simple moving average. Simple exponential smoothing with α = 0.1. We assume that the forecasted value of quarter 1 is 500. Which method is the most accurate and 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 26P: The file P13_26.xlsx contains the monthly number of airline tickets sold by the CareFree Travel...
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Question
The quarterly demand for smartphones at a retailer is as show.
Year |
Quarter |
Demand |
1 |
I |
513 |
1 |
II |
932 |
1 |
III |
1509 |
1 |
IV |
1902 |
2 |
I |
693 |
2 |
II |
1163 |
2 |
III |
1857 |
2 |
IV |
2469 |
- 4-quarter simple moving average.
- Simple exponential smoothing with α = 0.1. We assume that the forecasted value of quarter 1 is 500.
- Which method is the most accurate and why?
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