You are the manager for an electronics-manufacturing company. Use the following

Question

You are the manager for an electronics-manufacturing company. Use the following data to obtain forecasts for your company through various forecasting techniques.

Quarter Forecast Actual Demand Error
4Q 2008 200 220
1Q 2009 220 215
2Q 2009 215 210
3Q 2009 210 220
4Q 2009 220 225
1Q 2010 225 240
2Q 2010 240 255
3Q 2010 260
4Q 2010 270
1Q 2011

a). Compute the forecasts for all quarters of 2010 using the three quarter weighted moving average, with the most recent data weighted at 0.5, the second-most recent data weighted at 0.35, and the third-most recent data weighted at 0.15.

Explanation / Answer

1) daily visits to an internet site. Because of people's weekly schedules, the site might get more weekday traffic than on the weekends. A 7-day moving average would be useful for showing underlying trends beneath the weekly cycle. 2) daily stock price. A reasonable model would predict tomorrow's price based mostly on today's, and to a lesser and lesser extent on earlier days' prices. This would naturally indicate an exponential model would be most useful.

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