The following table shows the actual demand observed over the last 11 years:
Year 1 2 3 4 5 6 7 8 9 10 11
Demand 6 10 6 10 12 9 11 13 10 9 6
A) Using the 3-year moving average , provide the forcast from 4 through 12 (round answers to one decimal place)
Year 4 5 6 7 8 9 10 11 12
Forecast ___ ____ ___ ___ ___ __ ___ ___ ____
B) Using the 3-year weighted moving average with weights 0.20.0.25, and 0.55, using 0.55 for the most recent period,provide the forecast from periods 4 through 12. (round answers to two decimal places)
Year 4 5 6 7 8 9 10 11 12
Forecast ___ ____ ___ ___ ___ __ ___ ___ ____
C) Mean absolute deviation for the forecast developed using the 3 year moving average is 3.15 and for the 3 year weighted moving average is 3.19. Based on this information, the better forecast is achieved using the (3- year moving average or weighted moving average) approach.