Assignment:
Given the following original forecast and actual data:
|
Month
|
Actual
|
Forecast
|
|
Jan
|
600
|
400
|
|
Feb
|
475
|
--
|
|
Mar
|
550
|
--
|
|
Apr
|
575
|
--
|
|
May
|
675
|
--
|
|
Jun
|
650
|
--
|
|
Jul
|
???
|
???
|
- Use a 2 month weighted moving average with weights for periods Wt = 70%, Wt-1 = 30%, to make a forecast for July.
- Use exponential smoothing with a = 0.90 to make a forecast for July.
- For each of the above forecasting methods, calculate the MAD for March - June. Based on the information you calculated, which forecasting method would you pick?
Provide complete and step by step solution for the question and show calculations and use formulas.