Apply the 3-years moving average method to forecast the required demand for the year 2021 from the following historical data. Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 Demand 245 325 300 350 295 400 450 380 500

Apply the 3-years moving average method to forecast the required demand for the year 2021 from the following historical data. Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 Demand 245 325 300 350 295 400 450 380 500

Contemporary Marketing

18th Edition

ISBN:9780357033777

Author:Louis E. Boone, David L. Kurtz

Publisher:Louis E. Boone, David L. Kurtz

Chapter14: Pricing Strategies

Section14.2: Forecasting Demand

Problem 1LO

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Concept explainers

Forecasting in Business

Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the present. Forecasting plays a very important role in operational management as it helps in planning and decision-making. It is not only important for the success of a business but also contributes to individual growth and success. Many business organizations or companies have failed due to the shortcomings of their forecasting.

Question

Apply the 3-years moving average method to forecast the required demand for the year 2021 from the following historical data.

Years 2012 2013 2014 2015 2016 2017 2018 2019 2020
Demand 245 325 300 350 295 400 450 380 500

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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