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Table C2-4 shows total sales in pounds per month last year, which we can use to forecast demand. Using the data in Table C2-4, and

Table C2-4 shows total sales in pounds per month last year, which we can use to forecast demand.

Using the data in Table C2-4, and assuming we are just rolling over into the new year, use a 3-month simple moving average to forecast demand for January of this year.

Use a 3-month weighted moving average where the most recent month is given a weight of .5, the second most recent month is given a weight of .3, and the third most recent month is given a weight of .2, forecast demand for January of this year.

Using exponential smoothing with an alpha of 0.2, forecast demand for January and February of this year.

Find the deviation and MAD for each of the methods in #4a-#4c, and highlight the method that yields the most accurate forecast. Using an assumption that actual sales are going to be about 14,500 monthly, use the most accurate forecasting method to forecast demand for January through March of this year.

I am struggling primarily with the highlighted portion of this question

Table C2-4: Last Year's Sales
Month Sales
Jan 13,100
Feb 13,820
Mar 14,600
Apr 13,500
May 13,670
Jun 15,890
Jul 16,270
Aug 16,250
Sep 15,800
Oct 14,800
Nov 13,950
Dec 13,800

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