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1. Suppose a four-period weighted average is being used to forecast demand. Weights for the periods are as follows: wt-4 =0.1, wt-3 =0.2, wt-2 =0.3
1. Suppose a four-period weighted average is being used to forecast demand. Weights for the periods are as follows: wt-4 =0.1, wt-3 =0.2, wt-2 =0.3 and wt-1 =0.4. Demand observed in the previous four periods was as follows: At4=380,At3=410, At 2=390, At-1 =400. What will be the demand forecast for period t ? .1+2+.3+.4380+410+390+400=1580 2. Simple exponential smoothing is being used to forecast demand. The previous forecast of 66 turned out to be four units less than actual demand. The next forecast is 66.6 , implying a smoothing constant, alpha, equal to: Acual66+4=70forcast=66,36.6.6+4=70.6 3. Given an actual demand of 59 , a previous forecast of 64 , and an alpha of . 3 , what would the forecast for the next period be using simple exponential smoothing? Ti=Ft1+a(At1) 4. Given forecast errors of 4,8 , and -3 , what is the mean absolute deviation
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