Part C 3. The manager of a certain gasoline station wants to forecast the demand for the unleaded gasoline next month so that the proper number of gallons can be ordered from the distributor. The manager has accumulated the following data demand for unleaded gasoline from sales during the past eight months. Month Gasoline Demanded (gallons) Mar 900 Given that the forecast for March is 920. Аpr 755 May 650 Jun 550 Jul 625 Aug 730 Sept 820 Oct 1100 a. Compute the exponential smoothed forecast for the demand from April to November. Use a = 0.25. b. Compute the exponential smoothed forecast for the demand from April to November. Use a = 0.45. c. Plot the actual demand and the forecasts determined in part a and b on the same graph and compare them. d. Make a comparative analysis out of your answers in the plotted data. (3-5 sentences)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Part C
3. The manager of a certain gasoline station wants to forecast the demand for the unleaded gasoline next month so that the
proper number of gallons can be ordered from the distributor. The manager has accumulated the following data demand for
unleaded gasoline from sales during the past eight months.
Month
Gasoline Demanded (gallons)
Mar
900
Given that the forecast for March is 920.
Apr
755
May
650
Jun
550
Jul
625
Aug
730
Sept
820
Oct
1 100
a. Compute the exponential smoothed forecast for the demand from April to November. Use a = 0.25.
b. Compute the exponential smoothed forecast for the demand from April to November. Use a = 0.45.
c. Plot the actual demand and the forecasts determined in part a and b on the same graph and compare them.
d. Make a comparative analysis out of your answers in the plotted data. (3-5 sentences)
Transcribed Image Text:Part C 3. The manager of a certain gasoline station wants to forecast the demand for the unleaded gasoline next month so that the proper number of gallons can be ordered from the distributor. The manager has accumulated the following data demand for unleaded gasoline from sales during the past eight months. Month Gasoline Demanded (gallons) Mar 900 Given that the forecast for March is 920. Apr 755 May 650 Jun 550 Jul 625 Aug 730 Sept 820 Oct 1 100 a. Compute the exponential smoothed forecast for the demand from April to November. Use a = 0.25. b. Compute the exponential smoothed forecast for the demand from April to November. Use a = 0.45. c. Plot the actual demand and the forecasts determined in part a and b on the same graph and compare them. d. Make a comparative analysis out of your answers in the plotted data. (3-5 sentences)
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