PROBLEM: Calculating demand for hot tubs
MONTH |
DEMAND |
January |
4 |
February |
7 |
March |
11 |
April |
7 |
May |
14 |
June |
15 |
a. Using a simple three-month moving average, find the July forecast.
b. Using a weighted moving average with weights of .60, .30, and .10, find the July forecast. (NOTE: In your calculations, apply the highest weight to the most recent month and so forth, middle weight to the middle month, and lowest weight to the farthest month back.)
c. Using exponential smoothing with ? = .5 and a June FORECAST equal to 13, find the July forecast.
d. Using simple linear regression analysis, calculate the regression equation and the forecast for July.
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