Using a simple four-month moving average, calculate a forecast for October. (Rou

ID: 450440 • Letter: U

Question

Using a simple four-month moving average, calculate a forecast for October. (Round your answer to 2 decimal places.)

Using single exponential smoothing with = 0.20 and a September forecast = 65, calculate a forecast for October. (Round your answer to 2 decimal places.)

Using simple linear regression, calculate the trend line for the historical data. Say the X axis is April = 1, May = 2, and so on, while the Y axis is demand. (Round your intercept value to the nearest whole number and slope value to 2 decimal places.)

Calculate a forecast for October using your regression formula. (Round your answer to 2 decimal places.)

Historical demand for a product is as follows:

Explanation / Answer

(A)

Month

Demand

Four-month moving period

April

May

June

July

August

September

October

(75+64+80+78)/4= 74.25

Forecast for October using Four-month moving period = 74.25

(B) Ft-1 = 65

a= 0.20

At-1 = 78

Ft = Ft-1 + a(At-1 – Ft-1)

Ft = 65 + 0.2(78-65)

Ft= 67.6

So forecast for October using Exponential smoothing = 67.6