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Historical demand for a product is as follows:
June (150)
July (165)
August (175)
September (140)
October (155)
November (155)
* Calculate a weighted moving average forecast for December using weights of 0.4, 0.3 and 0.3.
* Using single exponential forecast with alpha = 0.3 and a starting forecast for June of 155 calculate the forecast for the other 5 months
* Calculate the mean absolute deviation (MAD) for the forecasts.
* What effect does changing the alpha to 0.4 have on the forecasts and the MAD?
Explain the differences. Be sure to demonstrate your work and provide a brief interpretation. (150 words maximum)
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