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TheGalamtour companyhasdemandforan itemformonthsJanuarythrough September. Your manager needs to compare two forecasting strategies to see which one performed better over time. Month Actual Month Actual January

  1. TheGalamtour companyhasdemandforan itemformonthsJanuarythrough September. Your manager needs to compare two forecasting strategies to see which one performed better over time.

Month

Actual

Month

Actual

January

110

June

180

February

130

July

140

March

150

August

130

April

170

September

140

May

160

  1. ForecastAprilthrough Septemberusingathree-monthmoving average.
  2. Usesimpleexponentialsmoothingwithanalphaof0.3toestimate Aprilthrough September,using theaverageofJanuarythrough Marchastheinitialforecast for April.
  3. UseMADtodecide whichmethodproduced thebetterforecast overthesix- month period and advise your manager of the better method.

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