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    Moving Average Forecast

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    The manager of Carpet City Outlet needs to make an accurate forecast of the demand for soft shag carpet (its biggest sale). If the manager does not order enough carpet from the carpet mill customers will buy their carpet from one of many competitors. The manager has collected the following demand data for the past 8 months:

    Month Demand for soft Shag carpet (1000yds)
    1 8
    2 12
    3 7
    4 9
    5 15
    6 11
    7 10
    8 12

    A. Compute a 3 month average forecast for months 4 through 9
    B. Compute a weighted 3 month moving avaerage forecastfor months 4 through 9. assign weights of .55, .33, and .12 to the months in sequence, starting with the most recent month.
    C. Compute the two forecast by using MAD. Which forecast appears to be more accurate.

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