The company wants to forecast this year’s demand for manual typewriters based on the following historical data:
Time Period Demand
5 years ago 900
4 years ago 700
3 years ago 600
2 years ago 500
Last year 300
A) What is the forecast for this year using a moving-average forecast based on the last three years?
B) What is the forecast for the next period using exponential smoothing method with a alpha factor of 0.4? a= 0.4