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The ACME Company has recorded the following data for one of its new products over a six-month period. (The company assumes no trend or seasonal effects.)
Month Demand (in units of product)
January 100
February 105
March 85
April 120
May 135
June 110
a. What would the July and August forecast have been if made at the end of June, using exponential smoothing with α = .3 and a forecast for June of 125 units?
b. What would the July and August forecast have been if made at the end of June, using five-month moving average?
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