(a) For the following data, verify that the 5 year weighted moving average with weights 1, 2, 2, 2, 1 respectively is equivalent to 4 year centred moving average:
Year
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Sales (K)
5
3
7
6
4
8
9
10
8
9
9
(b) The forecast of a product for the first week of March was 200 units, whereas the actual demand turned out to be 220 units.
Find the forecast for the second week of March by assuming the smoothing constant (α ) as 0.35.
Find the forecast for the third week of March if the actual demand of the second week is 210 units.