Quarterly Cash donations (in thousands of dollars) at the SDA Mission for 2004-2006 were as shown in
the following table.
Period Value
1 242
2 282
3 254
4 345
5 253
6 290
7 262
8 352
9 270
10 286
11 271
12 378
a) Using a weighted moving average with three periods, determine the donations for period 13. Use 3, 2,
and 1 for the weights of the most recent, second most recent, and third most recent periods, respectively
b) Use exponential smoothing with a smoothing constant of 0.20 to forecast the donations (Assume that
last period’s forecast for period 1 is equal to actual to begin the procedure(Ft1=Yt1). Which method do you think
is best? Is this an improvement over the weighted average- use MAD only ( Six marks)
c) Use regression analysis to estimate the line of best fit -use the manual method with the formulas
shown below. (Eight marks)
