Business Management Homework
Problem 5 - Use the data below to calculate two forecasts: 1) A 4 period Moving Average; 2) An Exponetial Smoothed forecast with an alpha of .2 What is the expected error for these two forecasting techniques? Which one do you recommend using?
| Actual | |
| Month | Demand |
| January | 1150 |
| February | 1480 |
| March | 1610 |
| April | 1500 |
| May | 1110 |
| June | 660 |
| July | 690 |
| August | 760 |
| September | 810 |
| October | 960 |
| November | 750 |
| December | 720 |
| January | 630 |
| February | 700 |
| March | 770 |
| April | 860 |
| May | 910 |
| June | 740 |
| July | 750 |
| August | 1000 |
| September | 1450 |
| October | 1760 |
| November | 1630 |
| December | 1200 |
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