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The following gives the number of oak desks sold during each of the last four months by a furniture store. Month Desks Sold May 55 June 50 July 54 August 60
a. Using a four-period weighted moving average, with weights w1 = .5, w2 = .2, w3 = .2 and w4 = .1, forecast the number of desks to be sold in September.
b. Using a two-period simple moving average, forecast the number of desks to be sold in September.
c. Using simple exponential smoothing with an initial forecast for May of 50 and smoothing constant α = 0.4, forecast the number of desks to be sold in September. If you also had to m months from now), what would it be?
d. Which of the forecasting methods used in part (b) and part (c) above will be more responsive to changes in demand?
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