QUESTION 2 a. Month Demand 1 45 234567899 48 43 48 49 54 47 50 46 10 47 Using the table above, calculate two forecasts using the following method:- i. iii. First, for periods 4 through 10, develop the exponentially smoothed forecasts using a forecast for period 3 (F3) of 45.0 and an alpha of 0.4. [3 marks] ii. Calculate the weighted moving average for periods 4 through 10, using weights of .70, .20, and .10, with 0.70 applied to the most recent data. Calculate the mean absolute deviation (MAD) for each forecasting procedure. Which forecasting procedure would you select? Why? [3 marks] [6 marks] b. The number of disk drives (in millions) made at a plant in China during the past 5 years follows: Year Disc Drives 1 140 2 160 3 190 4 200 5 210 i. Forecast the number of disk drives to be made next year, using linear regression. [13 marks]

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