The following data represents 15 quarters of manufacturing capacity utilization (in percentages)

Question: The following data represents 15 quarters of manufacturing capacity utilization (in percentages)

Quarter/year	Utilization	Quarter/year	Utilization
Jan-00	82.5	Jan-02	78.8
Feb-00	81.3	Feb-02	78.7
Mar-00	81.3	Mar-02	78.4
Apr-00	79	Apr-02	80
Jan-01	76.6	Jan-03	80.7
Feb-01	78	Feb-03	80.7
Mar-01	78.4	Mar-03	80.8
Apr-01	78

a. Compute three and four quarter moving averages for this time series. Which moving average provides the better forecast for the fourth quarter of 2003?

b. Use smoothing constants of to develop forecasts for the fourth quarter of 2003. Which smoothing constant provides the better forecast?

c. Based on the analysis in parts a and b, which method- moving averages or exponential smoothing- provides the better forecast? Explain.

Price: $2.99

Solution: The solution consists of 5 pages
Type of Deliverable: Word Document