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INFO 564 Summer 2018 Homework-4: A-CAT Corp: Forecasting Read the case A-CAT Corp. The focus of this homework will be the data provided in Exhib

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INFO 564 Summer 2018 Homework-4: A-CAT Corp: Forecasting Read the case A-CAT Corp. The focus of this homework will be the data provided in Exhib . A spreadsheet with this data is provided with this homework. While forecasting is about future outcomes, here you will be making forecasts for past periods simply to study how different forecasting methods would have performed in the past. This will give us guidance on what methods to use going forward. 1. Graph the data in Exhibi. Have all 60 months on the X axis. What time series components do you see? 2. Make forecasts for 60 months using the following methods a. 3-month moving average (your first forecast will be for April 2006, the last one for December 2010). Draw a graph showing actual demand and forecast. b. 3-month weighted moving average. The weights are: 60% (most recent period), 30% (next most recent) and 10% (oldest period). Your first forecast will be for April 2006, the last one for December 2010. Draw a graph showing actual demand and forecast. c. Exponential smoothing with a 0.2. Assume a forecast of 750 units for January 2006 and start making forecasts from February 2006 onwards. Your last forecast will be for December 2010. Draw a graph showing actual demand and forecast. d. Exponential smoothing with a-0.7. Assume a forecast of 750 units for January 2006 and start making forecasts from February 2006 onwards. Your last forecast will be for December 2010. Draw a graph showing actual demand and forecast. 3. Based on your graphs, which method do you think is best suited for this situation? Do all work in Excel. Retain all formulas. Format your work. Round all forecasts to closest whole number

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