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5. A firm experienced the demand shown in the following table. 5-YEAR 3-YEAR EXPONENTIAL EXPONENTIAL ACTUAL MOVING MOVING SMOOTHING SMOOTHING YEAR DEMAND AVERAGE AVERAGE (W
5. A firm experienced the demand shown in the following table. 5-YEAR 3-YEAR EXPONENTIAL EXPONENTIAL ACTUAL MOVING MOVING SMOOTHING SMOOTHING YEAR DEMAND AVERAGE AVERAGE (W = 0.9) (W = 0.3) 2000 800 XXXXX XXXXX XXXXX XXXXX 2001 925 XXXXX XXXXX 2002 900 XXXXX XXXXX 2003 1025 XXXXX 2004 1150 XXXXX 2005 1160 2006 1200 - 2007 1150 2008 1270 - 2009 1290 2010 *Unknown future value to be forecast.a. Fill in the table by preparing forecasts based on a five-year moving average, a three-year moving average, and exponential smoothing (with a w = 0.9 and a w = 0.3). Note: The exponential smoothing forecasts may be begun by assuming YHI = YA b. Using the forecasts from 2005 through 2009, compare the accuracy of each of the forecasting methods based on the RMSE criterion. c. Which forecast would you have used for 2010? Why
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