Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(a) Compute four-week and five-week moving averages for the time series. Week Time Series Value 4-Week Moving Average Forecast 5-Week Moving Average Forecast 1 18
(a) Compute four-week and five-week moving averages for the time series. Week Time Series Value 4-Week Moving Average Forecast 5-Week Moving Average Forecast 1 18 2 21 3 19 4 24 5 18 20.5 6 17 20.5 7 21 19.5 8 19 20 9 22 18.75 10 20 19.75 11 15 12 22 (b) Compute the MSE for the four-week moving average forecasts. (Round your answer to two decimal places.) Compute the MSE for the five-week moving average forecasts. (Round your answer to two decimal places.) (c) What appears to be the best number of weeks of past data (three, four, or five) to use in the moving average computation? MSE for the three-week moving average is 10.31. Three weeks appears to be best, because the three-week moving average provides the smallest MSE. Three weeks
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started