1. (40 points) WALKING ALIVE Apps is a small but growing startup that sees deman

Question

1. (40 points) WALKING ALIVE Apps is a small but growing startup that sees demand for several of its apps increase. For the last five months, monthly demands were 24,000; 29,000: 33,600: 39,000; and 43,500 a. Calculate the 6 month using the moving average with k-3 (3 points) b. Calculate the 6 month using the weighted moving average with the weights 0.2, and 0.8 (7 points) c. Calculate the 6-month using the exponential smoothing with F1-25,000; and -,4 ( 10 points) d. Compare the three models using MAD, and indicate the one that it is more favorable (18 points) Calculate the 7h month using the moving average with k-2 (2 points) e.

Explanation / Answer

The total solution for initial 4 question is given below

For 3MA, Week 6 forecast = 38700

For Weighted average week 6 forecast = 42600

FOr Exponential Smoothing week 6 forecast = 37292.16

As we compare MAD , will have get lowest MAD for weghted mean method.  

Month Demand 3MA Abs(Error) Weighte Moving Average Abs(Error) Exponential smoothing Abs(Error) 1 24000 25000 1000 2 29000 24600 4400 3 33600 28000 26360 7240 4 39000 28866.67 10133.333 32680 6320 29256 9744 5 43500 33866.67 9633.3333 37920 5580 33153.6 10346.4 6 38700 42600 37292.16 Average MAD 9883.3333 MAD 5950 MAD 6546.08

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.