Forecasting methods Solution

Forecasting methods Solution - as the actual. F(5) = 120 +...

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Solutions Time Period Actual ($) Thousands ________________________________________ 1 105 2 95 3 110 4 120 5 100 6 97 7 112 (a) Compute the three term moving average forecast for period 5. F(5) = 120 + 110 + 95 = 108.33 3 (b) Compute the five term moving average forecast for period 7. F(7) = 97 + 100 + 120 + 110 + 95 = 104.4 5 (c) Compute the exponentially weighted forecast for period 6 assuming alpha is 0.2 and the forecast for period 4 is the same
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Unformatted text preview: as the actual. F(5) = 120 + 0.2 (120 120) = 120 F(6) = 120 + 0.2 (100 120) = 116 (d) Compute the exponentially weighted forecast for period 8 assuming alpha equals 0.2 and the forecast for period 5 is 110 F(6) = 110 + 0.2(100 110) = 108 F(7) = 108 + 0.2(97 108 = 105.8 F(8) = 105.8 + 0.2(112 105.8) = 107.04...
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