# Forecasting the Demand - Moving Average and Trend Analysis

Forecasting Exercise

Year Demand ( in 1000's )

1 13

2 17

3 18

4 21

5 27

Develop a forecast for year 6, using two-year moving average and trend analysis. Identify which method is most appropriate for this data set

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#### Solution Preview

Moving Average method:

Let Xt denote the Demand(in 1000’s) at time t. Then a two year moving average for the time (t+1) is calculated using the formula:

X_t + 1 = 1/2 (X_t + X_t -1)

Here we want to ...

#### Solution Summary

Solution describes an application to moving average method and trend analysis.

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