Forecast the quarter 1 demand for year 3 using the following models: 4-quarter simple moving average. Simple exponential smoothing with α = 0.1. We assume that the forecasted value of quarter 1 is 500. Which method is the most accurate and why?

Forecast the quarter 1 demand for year 3 using the following models: 4-quarter simple moving average. Simple exponential smoothing with α = 0.1. We assume that the forecasted value of quarter 1 is 500. Which method is the most accurate and why?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.7: Exponential Smoothing Models

Problem 26P: The file P13_26.xlsx contains the monthly number of airline tickets sold by the CareFree Travel...

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Concept explainers

Individual Branding

Individual branding is a marketing strategy companies can use to associate each individual product with its own brand. This strategy helps in protecting a company’s other products if one of them fails or does not gain a great significance in the market.

Question

The quarterly demand for smartphones at a retailer is as show.

Year	Quarter	Demand
1	I	513
1	II	932
1	III	1509
1	IV	1902
2	I	693
2	II	1163
2	III	1857
2	IV	2469

Forecast the quarter 1 demand for year 3 using the following models:

4-quarter simple moving average.

Simple exponential smoothing with α = 0.1. We assume that the forecasted value of quarter 1 is 500.

Which method is the most accurate and why?

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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