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Weekly tires demand is as follows: d 1 = 9 , d 2 = 0 Week Demand 1 1 2 5 + d 1 *

Weekly tires demand is as follows:
d1=9, d2=0
Week Demand
1125+d1*d2
2152+d1+d2
3196+d1
4264+d2
5193
6110
7163
8 d1*2+d2+100
9247
10200+d1*d2
11175
12130
1. First use 2-period moving average model to forecast weeks 3 through 12 and evaluates the results by using MAD, MFE, and MAPE.
2. Estimate demand for the next four weeks (week 13>) using a five-week moving average, as well as simple exponential smoothing with \alpha =0.8 and \alpha =0.2. Explain the impact of alpha.
3. Evaluate the results of the exponential smoothing with \alpha =0.8 and \alpha =0.2.
4. Estimate demand for the next four weeks (week 13>) using a linear regression model.
5. Develop a regression model with seasonal adjustments for weeks 8 through 12. Compare with the results of Question 4.

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