1. A hotdog stand owner who sales hotdogs only on

1. A hotdog stand owner who sales hotdogs only on Saturdays has collected the following time series data on the number of hotdogs sold over the past 12 quarters.

Year                Quarter                      Demand           

1                      Winter                        29                    

1                      Spring                         65

1                      Summer                      56

1                      Fall                              45

2                      Winter                        23

2                      Spring                         57

2                      Summer                      48

2                      Fall                              32

3                      Winter                        14

3                      Spring                         55

3                      Summer                      52

3                      Fall                              25

A) Forecast next weekly rate using a 3 period moving average.

B) Forecast the next weekly rate using a 2 period moving averageWhich one of these (A or B)  is a better forecast and why? Please explain it in writing. 

C) Forecast the next weekly rate by using exponential smoothing with an alpha value of 0.3.

D) Forecast the next weekly rate by using a linear regression. 

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