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

Year1234567891011Demand61041013913148138

This exercise contains only parts b, c, and d.

Part 2

b) Using the 3-year moving average, provide the forecast from periods 4 through 12 (round your responses to one decimal place).

Year456789101112Forecast

Part 3

c) 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).

Year456789101112Forecast

Part 4

d) Mean absolute deviation for the forecast developed using the 3-year moving average is 2.74 and for the 3-year weighted moving average is 3.43.

Based on this information, a better forecast is achieved using the 3-year moving average or the weighted moving average approach?