Which method is more accurate

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Question: Consider the data from Problem.

(a) Forecast the demand for beer for each quarter in year 5 by using the multiplicative decomposition model.

(b) Repeat the computations by using an additive decomposition model.

(c) Which decomposition model is more accurate? Explain your answer.

Problem: The following table shows the quarterly demand, in thousands of cases, for a national beer distributor over the past 4 years:

1032_Quarter.png

(a) Forecast the demand for the first quarter of year 5 by using a four-period moving average model.

(b) Forecast the demand for the first quarter of year 5 by using an exponential smoothing model with a = 0.4.

(c) Which method is more accurate?

Reference no: EM131930005

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