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In: Operations Management

Historical demand for a product is as follows: April                60 May                 60 Jun

Historical demand for a product is as follows:

April                60

May                 60

June                55

July                 75

August             80

September       75

(a.) Using a simple four-month moving average, calculate a forecast for October.

(b.) Using single exponential smoothing with alpha=0.3 and a September forecast =70, calculate a forecast for October.

(c.) Using simple linear regression, calculate the trend line (Yt) for the historical data. The X-axis scale is: April = 1, May = 2, and so forth. Y-axis is Demand from above.

Yt = a + bx =

(d.) Using the linear regression model above, what is a forecast for October?

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