JMJ MARIST BROTHERS

NOTRE DAME OF MARBEL UNIVERSITY

COLLEGE OF BUSINESS AND ADMINISTRATION
City of Koronadal 9506
South Cotabato, Philippines

Eric John P. Villanueva December 7, 2020

BSA – 2

Problem #1
Forecast based on averages.
Prepare a forecast for period 6 using each of these approaches:
a. The appropriate naive approach
Period Number of complaints
1 60
2 65
3 55
4 58
5 64

64 is the next forecast since it is the most recent value of the series.

B. A three-period moving average.

C. A weighted average using weights of .50 (most recent), .30 and .20.

D. Exponential smoothing witha smoothing constant of .40

Period Number of complaints Forecast Calculations

1 60
2 65 60
3 55 62 60+.40(65-60)= 62
4 58 59.2 62+.40(55-62)= 59.2
5 64 58.72 59.2+.40(58-59.2)= 58.72
6 60.83 58.72+.40(64-58.72)= 60.83
 JMJ MARIST BROTHERS
NOTRE DAME OF MARBEL UNIVERSITY
COLLEGE OF BUSINESS AND ADMINISTRATION
City of Koronadal 9506
South Cotabato, Philippines

Problem #3
Linear trend line.
Plot the data on a graph, and verify visually that a linear is appropriate. Develop a linear
trend equation for the following data. Then use the equation to predict the next two
values of the series.

Period Demand
1 44
2 52 70

3 50 60
4 54 50
5 55
Demand

40
6 55
30
7 60
8 56 20

9 62 10

0
0 2 4 6 8 10
Period

Period Demand (y) ty &

(t)
1 1 44 44
2 4 52 104
3 9 50 150
4 16 54 216
5 25 55 275
6 36 55 330
7 49 60 420
Trend Equation:
8 64 56 448
9 81 62 558
45 285 488 2545 The next two forecasts:
t