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Mikaela sells homemade pies to many local cafes in Wollongong. She keeps a record of the sales of homemade pies to help her with demand

Mikaela sells homemade pies to many local cafes in Wollongong. She keeps a record of the sales of homemade pies to help her with demand forecasting. The price of a single pie is $4.80. Mikaela has been using a 3-week moving average forecasting model to forecast the demand for a week. The Actual demand column displays the actual number of pies sold in the week, whereas the Forecast column shows the forecasts Mikaela has obtained by using the 3-week moving average forecasting model.

Week Actual demand Forecast (3-week moving average)
1 438
2 420
3 414
4 318 424
5 306 384
6 240 346
7 240 288
8 216 262
9 198 232
10 225 218
11 270 213
12 315 231

1.Mikaela wants tomakethe forecasts more accurate. For that, she wants to use eitheran exponential smoothing forecasting model with = 0.20 or a 4-week moving average with weights 0.20, 0.50, 0.05, and 0.25. Which of the three forecasting models should she adopt? Why?

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