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The following table shows the actual demand observed over the last 11 years: Year 1 2 3 4 5 6 7 8 9 10 11

The following table shows the actual demand observed over the last 11 years:

Year

1

2

3

4

5

6

7

8

9

10

11

Demand

7

10

6

10

12

9

12

12

9

13

6

This exercise contains only parts b, c, and d.Part 2b) Using the 3-year moving average, provide the forecast from periods 4 through 12 (round your responses to one decimal place).

Year

4

5

6

7

8

9

10

11

12

Forecast

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

Part 3c) Using the 3-year weighted moving average with weights

0.10,

0.30,

and

0.60,

using

0.60

for the most recent period, provide the forecast from periods 4 through 12 (round your responses to two decimal places).

Year

4

5

6

7

8

9

10

11

12

Forecast

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

Part 4d) Mean absolute deviation for the forecast developed using the 3-year moving average is

2.24

and for the 3-year weighted moving average is

2.73.

Based on this information, the better forecast is achieved using the

3-year moving average

weighted moving average

approach.

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