Answer to Question #38448 in Economics of Enterprise for Tree

Question

Demand for the last four months was:
Month
Mar
Apr
May
Jun
Demand
6
8
10
8
A) Predict demand for July using each of these methods:
1) a 3-period moving average ;
2) using the weights of .5, .3, and .2, what is the three-period weighted moving average forecast for July;
3) exponential smoothing with alpha equal to .20, April forecast is 6 (use naïve to begin);
B) If the naïve approach had been used to predict demand for April through June, what would MAD have been for those months?