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A rental car manager estimates the number of full-size sedans rented per week so that she can maintain adequate number of cars in the lot.
Data for the past 10 weeks are shown here:
Week
Rentals
1
23
6
28
2
24
7
32
3
8
35
4
26
9
5
31
10
a)Prepare a forecast through week 11 by using a five –week moving average.
b)Prepare a forecast through week 11 by using a 3-period weighted moving average, giving the weight of 0.5 to themost recent week, 0.3 to the second week and 0.2 to the third week.
c)Prepare a forecast using exponential smoothing method with α = 0.2. Forecast for week 1 was 22.
Prepare a forecast through week 11 by using a regression model Y= 26.33 + 0.3212X
d)Which method is preferred for this data if mean absolute deviation (MAD) is used?
e)Make a recommendation for number of full-size sedans for a week.
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