Question
Omar has a booming wood-carving business selling works of art to buyers who are members of the Church. One of his most popular pieces is
Omar has a booming wood-carving business selling works of art to buyers who are members of the Church. One of his most popular pieces is a carving of the Prophet Joseph Smith. Omar's business has outgrown his ability to personally do all the carving on each piece. In order to grow his business, yet maintain the quality for which he is famous, he wants to hire an apprentice carver or two who would then do the easier portions of the Joseph Smith carvings and then leave the face portion for Omar to complete. Omar wants to develop a simple forecasting method to help him know how many apprentices to hire, how much wood to purchase, and so forth. The table below contains demand information for the past six months:
Month | J.S. Carvings Sold |
---|---|
1 | 60 |
2 | 49 |
3 | 50 |
4 | 50 |
5 | 41 |
6 | 44 |
What is the 3-month moving average forecast for carvings to be sold in Month 7? (Display your answer to two decimal places.) Using a 3-month weighted moving average (with last month's weight as 0.7, two months previous as 0.2, and three months previous as 0.1) what is the forecast for Month 7? (Display your answer to two decimal places.)
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