Problem Assignment
Demand Forecasting
(Total points: 10)
Historical demand for a product is as follows:
Time Period
1
2
3
4
5
6
Month
April
May
June
July
August
September
Demand
60
55
75
60
80
75
a) Using single exponential smoothing with α=0.2 and a July forecast = 65, calculate
the forecast for October. (3 points)
b) Using linear regression analysis, calculate the trend line (using least squares
equation) for the above data. (5 points)
c) Calculate a forecast for October using the regression equation obtained in part (b). (2
points)
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