(b) MONTH ACTUAL SALE Jan 15 Feb 16 Mar 14 Apr 18 May 21 Jun 20 Jul 19 Aug 22 Sep 24 (a) Use the three-month moving average to forecast the demand from April to September in the table above. [2 marks] (b) Use the three-month weighted moving average to forecast the demand from April to September in the table above using weights 0.23, 0.35, 0.42. [2 marks] (c) Given an alpha ($alpha$) value of 0.35, use the exponential smoothing method of forecasting to predict the demand from February to September in the table above. [4 marks] (d) Use the Mean Absolute Deviation (MAD) and the Mean Absolute Percent Error (MAPE) to compare the two methods, and state which is the most efficient one to use. [3 marks]
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For April, the three-month moving average would be (15 + 16 + 14) / 3 = 15. For May, the three-month moving average would be (16 + 14 + 18) / 3 = 16. For June, the three-month moving average would be (14 + 18 + 21) / 3 = 17.67 (rounded to 2 decimal Show more…
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