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(Solved): 4. Carol Campus, owner of Campus Carpet Cleaning (CCC) needs a quarterly forecast of the number ...
4. Carol Campus, owner of Campus Carpet Cleaning (CCC) needs a quarterly forecast of the
number of customers expected next year. Listed below are the quarterly demands for CCC
for the past four years. Using exponential smoothing, develop an appropriate forecasting
model that minimizes MSD and then forecast the next year (2023) by quarter using this
model.
Quarter
1
2
3
2019
50
340
525
100
2020
75
375
600
175
Year
2021
100
550
800
275
2022 2023
110
700
1050
250
?
?
?
Carol Campus, owner of Campus Carpet Cleaning (CCC) needs a quarterly forecast of the number of customers expected next year. Listed below are the quarterly demands for CCC for the past four years. Using exponential smoothing, develop an appropriate forecasting model that minimizes MSD and then forecast the next year (2023) by quarter using this model.
Expert Answer
To forecast the number of customers for the next year (2023) by quarter using exponential smoothing.Step 1: Calculate the average demand for each quarter over the past four years. Step 2: Choose the appropriate smoothing constant (alpha). Step 3: Use...