Exam 3: Forecasting

Suppose a four-period weighted average is being used to forecast demand. Weights for the periods are as follows: w_t-4 = 0.1, w_t-3 = 0.2, w_t-2 = 0.3 and w_t-1 = 0.4. Demand observed in the previous four periods was as follows: A_t-4 = 380, A_t-3 = 410, A_t-2 = 390, A_t-1 = 400. What will be the demand forecast for period t?

A manager uses the following equation to predict monthly receipts: Y_t = 40,000 + 150t. What is the forecast for July if t = 0 in April of this year?

A forecast based on the previous forecast plus a percentage of the forecast error is:

Which of the following features would not generally be considered common to all forecasts?