Question: Sales of quilt covers at J im‘s departmental store in
Melbourne over the last 12 months 2017 are shown below:
m;-
“-
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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)