Question
Demand for a particular type of battery fluctuates from one week to the next. A study of the last six weeks provides the following demands
Demand for a particular type of battery fluctuates from one week to the next. A study of the last six weeks provides the following demands (in dozens): 4, 5, 3, 2, 8, 10 (last week)
Forecast demand for the next week using a two-week moving average
Forecast demand for the next week (week 7) using a three-week moving average
We assume the forecasted value for week 1 was 5. Forecast week 7 by using an exponential smoothing method with alpha = 0.1
By comparing only the accuracy of the two methods used in (a) and (b). which of these two methods is the most accurate? Justify your answer.
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