Forecasting

Question: Sales of quilt covers at J im‘s departmental store in Melbourne over the last 12 months 2017 are shown below: m;- “- -_ Calculate: 1. Use a 3-month and 4-month moving average on all the data and plot the averages and the actual demand. (2 marks) 11. Using MAD technique determine which is better: the 3- month moving average or the 4-month moving average? (1 mark) 111. Compute forecasts for each month using exponential smoothing with an alpha of 0.4 and 0.3, and with an initial forecast for January of 20. Using MAD, determine which alpha is the best? (2 marks)