Plot these forecasts AND the original demand data on graph paper or spreadsheet. Use a key to distinguish among your three lines.Please use the graph in the attached picture for the answer. #1 - Average Forecast: 3 Month Moving Average#2-Average Forecast: 5 Month Moving AverageFt3 MonthForecastAtFtAt5 MonthMoving AvgForecastCumulativeForecast ErrorForecastCumulativeDtDemand3 MonthMoving AvgDt5 MonthForecastPeriodErrorForecast ErrorPeriod DemandError1300113001100211003900390016001100.01100.0500.016001200.01200.0300.0766.7150015001280.01333,31733.321001333.3621001280.0820.024001733.3666.724001440.01440.0960.02000.01700.02000.02166.7820000.0820001700.0300.0929002166.7..733.3929001920.01920.0............980.032003700102433.32433.3766.71032002180.02180.01020.0112700.02700.01000.01137002520.02520.01180.012240016003266.7-866.72840.0........*i2840.03266.7122400440.0......133100.03100.0-1500.01316002840.02840.0-1240.0800.010001820.01410002566.72566.7-1566.7142760.02760.0-1760.0Time-series dataDon't forget to chart the demand data120110100908070- 3-Period Moving Average60---5-Period Moving Average504030201 2 34 5 6 7 810 11 12 13 14Time periodDemand

Find the given details below: Given details: Period Original Demand 3 Months Moving average 5…

Answered: Plot these forecasts AND the original…

Plot these forecasts AND the original demand data on graph paper or spreadsheet. Use a key to distinguish among your three lines. Please use the graph in the attached picture for the answer.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section: Chapter Questions

Problem 42P: The file P13_42.xlsx contains monthly data on consumer revolving credit (in millions of dollars)...

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Concept explainers

Forecasting

Forecasting is a methodology that uses historical data as inputs to make well-informed predictions about the course of future trends. Forecasting is the method of making forecasts based on historical and current data, most commonly by trend analysis. In the business world, forecasting is a basic statistical task. Forecasting is used by businesses to decide how to allocate their budgets or prepare for expected expenditures in the future. Forecasts help managers formulate and execute production plans by providing forecasts. The primary goal of forecasting is to make accurate predictions.

Question

Plot these forecasts AND the original demand data on graph paper or spreadsheet. Use a key to distinguish among your three lines.

Please use the graph in the attached picture for the answer.

#1 - Average Forecast: 3 Month Moving Average
#2-Average Forecast: 5 Month Moving Average
Ft
3 Month
Forecast
At
Ft
At
5 Month
Moving Avg
Forecast
Cumulative
Forecast Error
Forecast
Cumulative
Dt
Demand
3 Month
Moving Avg
Dt
5 Month
Forecast
Period
Error
Forecast Error
Period Demand
Error
1300
1
1300
1100
2
1100
3
900
3
900
1600
1100.0
1100.0
500.0
1600
1200.0
1200.0
300.0
766.7
1500
1500
1280.0
1333,3
1733.3
2100
1333.3
6
2100
1280.0
820.0
2400
1733.3
666.7
2400
1440.0
1440.0
960.0
2000.0
1700.0
2000.0
2166.7
8
2000
0.0
8
2000
1700.0
300.0
9
2900
2166.7
..
733.3
9
2900
1920.0
1920.0
............
980.0
3200
3700
10
2433.3
2433.3
766.7
10
3200
2180.0
2180.0
1020.0
11
2700.0
2700.0
1000.0
11
3700
2520.0
2520.0
1180.0
12
2400
1600
3266.7
-866.7
2840.0
........*i
2840.0
3266.7
12
2400
440.0
......
13
3100.0
3100.0
-1500.0
13
1600
2840.0
2840.0
-1240.0
800.0
1000
1820.0
14
1000
2566.7
2566.7
-1566.7
14
2760.0
2760.0
-1760.0
Time-series data
Don't forget to chart the demand data
120
110
100
90
80
70
- 3-Period Moving Average
60
---5-Period Moving Average
50
40
30
20
1 2 3
4 5 6 7 8
10 11 12 13 14
Time period
Demand

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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