Data collected on the yearly registrations for a Six Sigma seminar at the Quality College are shown in the following table:
a. Develop a 3-Year moving average to forecast registrations from year 4 to 12.
b. Estimate demand again for year 4 to 12 with a 3-Year weighted moving average in which
registrations in the most recent years are given a weight of 0.7, and registrations in the other 2
years are each given a weight of 0.15 and 0.15 respectively.
c. Use exponential smoothing with a smoothing constant of 0.4, 0.6 and 0.7 to forecast the
registration at the seminar. To begin the forecast, assume the year 1 forecast is 5,500 people
signing up.
a. What is the MAD?
b. What is the MSE?
c. Which model is best?
d. Graph the actual data and the forecast data of all the above-mentioned models.