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:
(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?