1. The owner of a chocolate outlet store wants to forecast chocolate demand. Demand for the preceding four years is shown in the following table:
|
Year
|
Demand (pounds)
|
|
1
|
68800
|
|
2
|
71000
|
|
3
|
75500
|
|
4
|
71200
|
Forecast demand for year 5 using the following approaches:
i. A three-year moving average
ii. Exponential smoothing with a = 0.30, and assuming the forecast for period 1 = 68,000