A rental car manager estimates the number
A rental car manager estimates the number of full-size sedans rented per week so that she can maintain adequate number of cars in the lot. Data for the past 10 weeks are shown here:
Week | Rentals | Week | Rentals |
1 | 23 | 6 | 28 |
2 | 24 | 7 | 32 |
3 | 32 | 8 | 35 |
4 | 26 | 9 | 26 |
5 | 31 | 10 | 24 |
a) Prepare a forecast through week 11 by using a five –week moving average
b) Prepare a forecast through week 11 by using a 3-period weighted moving average, giving the weight of 0.5 to the most recent week, 0.3 to the second week and 0.2 to the third week.
c) Prepare a forecast using exponential smoothing method with ? = 0.2. Forecast for week 1 was 22.
Prepare a forecast through week 11 by using a regression model Y= 26.33 + 0.3212X
d) Which method is preferred for this data if mean absolute deviation (MAD) is used?
e) Make a recommendation for number of full-size sedans for a week.
-
Rating:
/5
Solution: A rental car manager estimates the number