In Class Example The Acme Rocket Company has seen the following demand over the period from July to December 1. Develop a 3 period moving average forecast to forecast months October to January 2. Use exponential smoothing with ? = .4 to forecast

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In Class ExampleThe Acme Rocket Company has
seen the following demand over the period from
July to December1. Develop a 3 period moving
average forecast to forecast months October to
January2. Use exponential smoothing with ? .4
to forecast demand from August to January.
(assume the forecast for July was 110).
July 110
August 115
September 105
October 110
November 125
December 110
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In Class Example3 Period Moving Average
July 110
August 115
September 105
October 110
November 125
December 110
January
(110 115 105)/3 110
(115 105 110)/3 110
(105 110 125)/3 113.333
(110 125 110)/3 115
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In Class ExampleExponential Smoothing, ?
.4 Ft ?At-1 (1- ?)Ft-1
July 110
August 115
September 105
October 110
November 125
December 110
January
110
.4(110) (1-.4)110 110
.4(115) (1-.4)110 112
.4(105) (1-.4)112 109.2
.4(110) (1-.4)109.2 109.52
.4(125) (1-.4)109.52 115.71
.4(110) (1-.4)115.71 113.43