Not all the items in your office supply store are evenly distributed as far as demand is concerned, so you decide to forecast demand to help plan your stock.
Past data for legal-sized yellow tablets for the month of August are
1 350
2 450
3 650
4 750
a. Using a three-week moving average, what would you forecast the next week to be? (Round your answer to the nearest whole number.)
b. Using exponential smoothing with a = 0.30, if the exponential forecast for week 3 was estimated as the average of the first two weeks [(350 + 450)/2 = 400], what would you forecast week 5 to be? (Round your answer to the nearest whole number.)