Question

The answer is not the ones marked.

Kristen Pacheco owns a small restaurant that's open seven days a week. Until recently, she forecasted the daily number of customers she would have using her intuition. However, she wanted to open another restaurant and recognized the need to adopt a more formal method of forecasting that could be used in both locations. Kristen decided to compare a three week moving average forecast with exponential smoothing forecasts using a = .7 and a = .3. She collected sales data for a month. The actual sales for the past three weeks are shown in the table below along with her forecast for last week. Customers Per Day Tue Wed Week Sun Mon Thu Fri Sat Actual: 138 183 182 188 207 277 388 3 weeks ago 2 weeks ago 143 194 191 200 213 292 401 Last week 157 196 204 193 226 313 408 Forecast: Last week 155 191 192 198 204 286 396

Answer 1

7) The correct answer is D.
Kirsten can use any of the method because they will be accurate to an extent given the only 3 week data is available.

8) he correct answer is C
In time series, typically the first forecast is the average of the recent historical actual demands.