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Question: 1. Daily demand for marigold flowers at a large garden store is shown below. Compute:
a. A three-period moving average for each period.
b. A five-period moving average for each period.
2. The number of daily calls for the repair of Speedy copy machines has been recorded as follows:
a. Prepare three-period moving-average forecasts for the data. What is the error on each day?
b. Prepare three-period weighted-moving-average forecasts using weights of w1 = .5, w2 = .3, w3 = .2.
c. Which of the two forecasts is better?
The system will cost $50,000 and will have no market value at the end of five year study period. The store's MARR is 20% per year. Use the AW method to evaluate this investment.
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