Year Demand ( in 1000's )
Develop a forecast for year 6, using two-year moving average and trend analysis. Identify which method is most appropriate for this data set
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 describes an application to moving average method and trend analysis.