Here are the actual tabulated demands for an item for a nine-month period (January through September)....

Here are the actual tabulated demands for an item for a nine-month period (January through September). Your supervisor wants to test two forecasting methods to see which method was better over this period.

MONTH	ACTUAL
January	124
February	124
March	152
April	172
May	156
June	176
July	144
August	128
September	142

a. Forecast April through September using a three-month moving average. (Round your answers to 2 decimal places.)

b. Use simple exponential smoothing with an alpha of 0.30 to estimate April through September, using the average of January through March as the initial forecast for April. (Round your answers to 2 decimal places.)

c-1. Calculate MAD for each method. (Round your answers to 2 decimal places.)

c-2. Use MAD to decide which method produced the better forecast over the six-month period.

Exponential smoothing.
Three-month moving average.

Solutions

Expert Solution

orchestra answered 1 year ago

Next > < Previous

Related Solutions

The management estimates total sales for the period January through June based on actual sales from...

The management estimates total sales for the period January through June based on actual sales from the immediate past six months. The following assumptions are made: 1. The Sales were $150,000 in January 2018 and then the sales grew by 10% each month for the first five months (February to June). The sales are expected to grow by 5% each month thereafter. 2. 50% of the Sales are collected in the same month. 45% of the sales are collected in...

The management estimates total sales for the period January through June based on actual sales from...

The management estimates total sales for the period January, 2019 through June, 2019 based on actual...

The management estimates total sales for the period January, 2019 through June, 2019 based on actual sales from the immediate past six months. The following assumptions are made:  The Sales were $140,000 in July 2018 and then the sales grew by 2% each month in the first three months (i.e., from August to October 2018) and by 5% in the next two months (i.e., in November and December 2018). The sales are expected to grow by 1% each month...

For the 12 month period February 2018 through January 2019, the number of degree days that...

For the 12 month period February 2018 through January 2019, the number of degree days that accrued for the Amherst, MA area was 5903. Many houses in New England heat with oil. Suppose a reasonable-size house required a total of 1400 gallons of oil for that recent entire 12- month period. Suppose also that heating oil is priced at $2.90 per gallon. A. What was the total cost to purchase the oil to heat the house for the entire year?...

In the 3-month period November 1, 2014, through January 31, 2015, Hess Corp. (HES) stock decreased...

In the 3-month period November 1, 2014, through January 31, 2015, Hess Corp. (HES) stock decreased from $80 to $64 per share, and Exxon Mobil (XOM) stock decreased from $96 to $80 per share. If you invested a total of $26,880 in these stocks at the beginning of November and sold them for $22,080 3 months later, how many shares of each stock did you buy? Hess Corp. (HES) stock shares Exxon Mobil (XOM) stock

In the 3-month period November 1, 2014, through January 31, 2015, Hess Corp. (HES) stock decreased...

In the 3-month period November 1, 2014, through January 31, 2015, Hess Corp. (HES) stock decreased from $80 to $64 per share, and Exxon Mobil (XOM) stock decreased from $96 to $80 per share.† If you invested a total of $25,920 in these stocks at the beginning of November and sold them for $21,120 3 months later, how many shares of each stock did you buy?

Fitbit, Inc., reported the following information for the nine-month period ended October 1, 2016. Items are...

Fitbit, Inc., reported the following information for the nine-month period ended October 1, 2016. Items are in thousands of dollars. Accounts Payable $ 520,100 Accounts Receivable 462,000 Advertising Expense 80,500 Cash (January 1, 2016) 665,100 Cash (October 1, 2016) 679,170 Common Stock 834,200 Equipment 256,100 Office Expenses 114,600 Income Tax Expense 19,000 Interest Expense 3,300 Inventories 215,700 Notes Payable 54,400 Operating Expenses 263,800 Retained Earnings (January 1, 2016) 261,000 Sales Revenue 511,570 Supplies 87,100 Other cash flow information: Cash received...

The following food exposure information was collected through the cohort study. On January 19, the information was tabulated by epidemiologists from the Argentine MOH.

PART IV - ANALYSIS AND INTERPRETATION OF EPIDEMIOLOGIC RESULTS The following food exposure information was collected through the cohort study. On January 19, the information was tabulated by epidemiologists from the Argentine MOH. (Table 2) Table 2. Foods eaten by ill and well bus drivers at the home at the terminal bus stop, January 3-7, 1998. (N=21) Food item Ate item Did not eat item Ill Well Ill Well Bologna 1 0 8 12 Hot dog 1 1...

The Marlow Sales and Distribution Co. needs $460,000 for the 3-month period ending September 30, 2015....

The Marlow Sales and Distribution Co. needs $460,000 for the 3-month period ending September 30, 2015. The firm has explored two possible sources of credit. a. Marlow has arranged with its bank for a $460,000 loan secured by its accounts receivable. The bank has agreed to advance Marlow 75 percent of the value of its pledged receivables at a rate of 12 percent plus a 1 percent fee based on all receivables pledged. Marlow's receivables average a total of $1...

The following information for Dorado Corporation relates to the three-month period ending September 30. Units Price...

The following information for Dorado Corporation relates to the three-month period ending September 30. Units Price per Unit Sales 520,000 $ 55 Beginning inventory 54,000 37 Purchases 495,000 43 Ending inventory 29,000 ? Dorado expects to purchase 245,000 units of inventory in the fourth quarter of the current calendar year at a cost of $44 per unit, and to have on hand 83,000 units of inventory at year-end. Dorado uses the last-in, first-out (LIFO) method to account for inventory costs....

Subjects