What information do you think it would take into account in forecasting initial sales?
1. Prepare a forecast for period 6 using each of these approaches:a. The appropriate naive approachb. A three-period moving averagec. A weighted average using weights of .5 (most recent), .3, and .2d. Exponential smoothing with a smoothing constant of .4PeriodNumber of Complaints1502623584535642. Two different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are as follows:PeriodDemandF1F21686669272747037574724737175Compute MAD for each set of forecasts. Given your results, which forecast to be the more accurate? Explain.Compute MSE for each set of forecasts given your results, which forecast appears to be the most accurate? Explain.3. Suppose a software producer is about to release a new version of its popular software.What information do you think it would take into account in forecasting initial sales?
