Chu Clocks Has the Following Demand History for the Past

question 50

Short Answer

Chu Clocks has the following demand history for the past six months:
$$\begin{array} { | c | c | } \hline \text { January } & 54 \\\hline \text { February } & 62 \\\hline \text { March } & 74 \\\hline \text { April } & 65 \\\hline \text { May } & 50 \\\hline \text { June } & 58 \\\hline\end{array}$$
A) Using a 3-month moving average, find the July forecast.
B) Using a weighted moving average with weights of 0.7, 0.2, and 0.1, find the July forecast.
C) Using exponential smoothing with α = 0.25 and a June forecast of 56, find the July forecast.

• A) Using a 3-month moving average, find the July forecast.
• B) Using a weighted moving average with weights of 0.7, 0.2, and 0.1, find the July forecast.
• C) Using exponential smoothing with α = 0.25 and a June forecast of 56, find the July forecast.

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Definitions:

Function

In mathematics, a relation between sets that associates every element of a first set to exactly one element of the second set.

Absolute Value

The distance of a number from zero on the number line, without regard to direction, represented as |x|.

Function

A correspondence between an array of inputs and a choice of outputs, with the rule that each input associates with just one output.

Speed

The rate at which an object moves, calculated as distance traveled per unit of time.