EXHIBIT 2 – (Questions: 12 – 14) The actual demand and forecast over 6 months are given in the table below.

EXHIBIT 5 (Questions: 20 – 22) A home builder wants to compare different forecast methods. The table below lists the demand history.  

What is the forecast for Month 7 based on the exponential smoothing method with trend? Use a smoothing parameter for level α = 0.85 and a smoothing parameter for trend β=0.7. Consider the data for June to be L6 = 85 and T6 = 7.

Which of the following statements is incorrect about what a company’s mission statement provides?

What is the forecast for July based on a weighted moving average forecast? Use a weight of 70% on the most recent period and 10% on the other periods.

EXHIBIT 4 (Questions: 18 – 19) A restaurant serves 4000 meals monthly on average at a cost of $20/meal. Each month, it spends $25,000 on wages, $5,000 on rent, $30,000 on food, and $5,000 on administrative costs.    

What is the forecast for Month 7 based on a Naïve forecast?

Which of the following aspects of demand makes every forecast inaccurate?

What is the value in field 1?

What is the forecast for July based on the exponential smoothing method? The smoothing parameter α = 0.8. Use 1600 units as the forecast for June.