Question
4. Beth's Hot Chips on-line business uses a T1 line to connect their electronic business to the internet. They have been in business for one
4. Beth's Hot Chips on-line business uses a T1 line to connect their electronic business to the internet. They have been in business for one year and have had the same bandwidth (Internet access capacity) for that entire year. Their percentage utilization is given as follows:
Month | Bandwidth |
January | 35.5% |
February | 38.2% |
March | 44.1% |
April | 47.7% |
May | 51.2% |
June | 55.9% |
July | 60.0% |
August | 62.3% |
September | 65.7% |
October | 71.1% |
November | 75.7% |
December | 79.3% |
Produce a forecast for the next month (January of next year) using each of the following techniques:
a. Three period moving average.
b. Three period weighted moving average using the weights of 1, 2, and 5.
c. Exponential smoothing using the forecast for the first period of 35% anda = 0.8.
d. Linear trend model.
e. What would you recommend to Beth regarding the forecast for the next month? Explain. Based on the analysis, estimate when will Beth need additional bandwidth?
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