Data collected on the yearly demand for 50-pound bags of fertilizer at Wallace Garden Supply are sho 1 answer below »
Please work this out in excel so i can understand the formulas. Thanks. Question attached.
Data collected on the yearly demand for 50-pound bags of fertilizer at Wallace Garden Supply are shown in the following table. Year Demand for fertilizer (1,000s of bags) 1 4 2 6 3 4 4 5 5 10 6 9 7 10 8 11 9 15 10 16 11 18 Develop a 3-year moving average to forecast sales. Then estimate demand again with a weighted moving average in which sales in the most recent year are given a weight of 3 and a weight of 2 for the second past year and sales in the other 2 years are each given a weight of 1. Which method do you think is best? Develop a trend line for the demand for fertilizer using any computer software. You have now developed three different forecasts. These are a 3-year moving average, a weighted moving average, and a trend line. Which one would you use? Explain your answer.