Statistics Solutions

[All Steps] A historical demand (observation) of paper sales in cases is: January, 45; February, 40; March, 35; April, 50; and May, 55. Using a two month

Question: A historical demand (observation) of paper sales in cases is: January, 45; February, 40; March, 35; April, 50; and May, 55.

Using a two month moving average, what is the forecast for June? What is the difference if you use a three month moving average? If June experienced a demand of 65, what are these forecasts for July?

Suppose that the forecast (not observation) for January was 65. Using single exponential smoothing with an alpha = 0.25, compute the exponential smoothing forecast for February through June.

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