Bob is a photographer who sells prints on consignment. Each week during the summ
ID: 3394810 • Letter: B
Question
Bob is a photographer who sells prints on consignment. Each week during the summer, Bob checks the inventory so that he can replenish the prints that have been sold. The following data show the number of prints sold each week during the last eight weeks. Complete parts a through d below.
Week 1 2 3 4 5 6 7 8
Sold 14 12 11 14 17 14 11 8
a) Forecast the demand for Week 9 using a two-period simple moving average.
b) Calculate the MAD for the forecast in part a
c) Forecast the demand for Week 9 using a three-period simple moving average.
d) Calculate the MAD for the forecast in part c.
Explanation / Answer
a)
b) MAD= 19.5 /2 =9.75
c)
MAD= 16.34 /3 =5.4467
Two year Moving Average Yi y hat error=yi-yhat Abs(Error) 14 12 11 13 -2 2 14 11.5 2.5 2.5 17 12.5 4.5 4.5 14 15.5 -1.5 1.5 11 15.5 -4.5 4.5 8 12.5 -4.5 4.5 sum= 19.5