Question

The business analyst for Video Sales, Inc. wants to forecast yearly demand for DVD decoders based on the following historical data:

Year	Demand
5 years ago	900
4 years ago	700
3 years ago	600
2 years ago	500
Last year	300

What is the forecast for this year using a three-year simple moving average? 

What is the forecast for last year using simple exponential smoothing with smoothing constant alpha = 0.4, if the forecast for two years ago was 750? 

What is the forecast for this year using simple exponential smoothing with smoothing constant alpha = 0.4, if the forecast for two years ago was 750? 

Answer 1