Exhibit 8-2 . The past demand data shown below can be regarded as having a horiz
ID: 3264952 • Letter: E
Question
Exhibit 8-2. The past demand data shown below can be regarded as having a horizontal pattern.
Month
Demand
January
40
February
45
March
50
April
37
Refer to Exhibit 8-2. What is the forecast for May found by the four-month moving average method?
-10.5
-8
0
8
17%
2.5%
18%
D.-19%
Refer to Exhibit 8-2. What is the error of the forecast for April found by the two-month moving average method?
40
42.8
41.5
D. 39.5
Refer to Exhibit 8-2. What is the absolute percentage error of the forecast for March found by the exponential smoothing method with a smoothing constant of 0.3?
44
43
37
D. 45
Refer to Exhibit 8-2. What is the forecast for March found by the exponential smoothing method with a smoothing constant of 0.3?
Month
Demand
January
40
February
45
March
50
April
37
Explanation / Answer
a) forecast for May found by the four-month moving average method = (40+45+50+37)/4 = 43
Option B is Correct
b) forecast for April found by the two-month moving average method =(45+50)/2 = 47.5
Errror = 37-47.5 = -40.5
Option A is Correct
c) Forecast for March = 40+0.3*(45-40) = 41.5
Option C is Correct
d) Absolute percentage error = (50-41.5)/50 = 17%
Option A is Correct
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