Brad's Burritos provides a simple set of lunch offerings in a college town. The shop has recently

Question:

Brad's Burritos provides a simple set of lunch offerings in a college town. The shop has recently decided to implement a forecasting system and is testing the use of exponential smoothing methods. The owner is willing to assume that by now, the number of customers who come to the shop at lunchtime (noon to 2 P.M.) does not exhibit trends or cyclic effects on weekdays. Data collection has gone on for two weeks (10 weekdays), counting the number of lunchtime customers. The observations are shown in the table.
F M T W T F Customers 108 130 96 144 136 113 120 119 120 106 м T W т Day

a. Compute a forecast for the number of lunchtime customers on the next weekday by using a 3-day moving average. What is the forecast? What is the MAD for the last five observations?
b. Compute a forecast for the number of lunchtime customers on the next weekday by using exponential smoothing with a = 0.3. What is the forecast? What is the MAD for the last five observations?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Management Science The Art Of Modeling With Spreadsheets

ISBN: 1301

4th Edition

Authors: Stephen G. Powell, Kenneth R. Baker

Question Posted: