Assignment:
Demand for biscuits at a small market (in kilograms) is given in the following table for the weeks:
|
Week
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
|
Demand
|
26.4
|
28.0
|
25.8
|
26.3
|
26.4
|
27.3
|
26.2
|
27.1
|
a) Use method of moving averages to forecast the demand for weeks 5 through 8. Choose the method parameter N as 4. Compute MAD for your forecasts through weeks 5 to 8.
b) What would be your forecasts for weeks 9, 10, and 11.
c) Suppose that actual demand during week 9 turned out to be 25.0 kilograms, then how would you revise your forecasts for weeks 10 and 11.
Provide complete and step by step solution for the question and show calculations and use formulas.