1. Cynthia's Design Studios had sales the last four months of $13,700, $15,400, $17,100, and $18,800. Sales are related to how many designers Cynthia has on-duty. The sales forecast helps her decide on the proper staffing levels. a. What is the forecast for the fifth month using a two-period moving average? b. What is the forecast for the fifth month using 0.9 in an exponential smoothing model with A₄ = $18,800 and F₄ = $16,913 to get things started.
2. A manufacturer uses a moving average to predict how many replacement parts for Part #8119 they should produce per month. Past demand is as follows.