Question
Cash donations (in thousands of dollars) at the Union Mission for 2019-2021 were as shown below. Quarter Donations QI 2019 242 Q2 2019 282 Q3
Cash donations (in thousands of dollars) at the Union Mission for 2019-2021 were as shown below.
Quarter | Donations |
QI 2019 | 242 |
Q2 2019 | 282 |
Q3 2019 | 254 |
Q4 2019 | 345 |
QI 2020 | 253 |
Q2 2020 | 290 |
Q3 2020 | 262 |
Q4 2020 | 352 |
QI 2021 | 270 |
Q2 2021 | 286 |
Q3 2021 | 271 |
Q4 2021 | 378 |
a. Utilizing excel, determine the seasonal factors for the four quarters.
b. After considering seasonal effects, apply the moving-average method based on the most recent 4 quarters (n=4) to forecast the cash donation of Q1 in 2022.
c. After considering seasonal effects, apply the exponential smoothing method to forecast cash donation in Q1 in 2022. Please use Solver to identify the best smoothing constant (Alpha) to reduce MSE error of your forecasting.
d. Lastly, compare both the MAPE and MSE values for the above forecasting methods and identify which method is more precise.
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