Demand for the Last Four Months Was A) Predict Demand for July Using Each of These Methods

question 60

Essay

Demand for the last four months was: $$\begin{array} { l l l l l } \text { Month } & \text { March } & \text { April } & \text { May } & \text { June } \\\hline \text { Demand } & 6 & 8 & 10 & 8\end{array}$$ A) Predict demand for July using each of these methods:
1) a three-period moving average
2) exponential smoothing with alpha equal to .20 (use a naive forecast for April for your first forecast)
B) If the naive approach had been used to predict demand for April through June, what would MAD have been for those months?

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