Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(a) Suppose the data in the table below represents total revenues (in $ millions) for one real estate agency in the GTA. Fill in the
(a) Suppose the data in the table below represents total revenues (in $ millions) for one real estate agency in the GTA. Fill in the 3year Moving Averages, Weighted Moving Averages (with weights 5,3,2 starting from the most recent time period), and the Exponential Smoothing Forecast values in the table below: Round your answers in part (a) to 2 decimal places. 3-Year Weighted Exponential Revenue Moving Moving Smoothing Averages Averages a: = 0.25 2016 2017 2018 2019 2020 2021 2022 Forecast Round your answers in part (b) to 2 decimal places, and round the MADIMAE to 3 decimal places. (b) Calculate the MAD/MAE for 3year Moving Averages for 20192021 (use results from the previous problem). 3-Year Year Revenue Moving Averages Absolute Error 2016 4.7 2017 4.9 2018 5.4 2019 5.9 2020 6.7 7. :J :l 2021 9 Round your answers in part (c) to 2 decimal places, and round the MADIMAE to 3 decimal places. (c) Calculate the MAD/MAE for Weighted Moving Averages for 20192021 (use results from the previous problem with weights 5,3,2 starting from the most recent time period). Weighted Year Revenue Moving Averages 2017 4.9 2018 5.4 Absolute Error 2019 5.9 2020 6.7 2021 7.9 MADIMAE (d) Based on the results (b)(c), which method provides a better forecast of the revenue for 20192021? Weighted Moving Averages, since the MAD/MAE for Weighted Moving Averages is greater than the MAD/MAE for 3Year Moving Averages. Weighted Moving Averages, since the MAD/MAE for Weighted Moving Averages is less than the MAD/MAE for 3Year Moving Averages. 3Year Moving Averages, since the MAD/MAE for 3Year Moving Averages is iess than the MAD/MAE for Weighted Moving Averages. 3Year Moving Averages, since the MAD/MAE for 3Year Moving Averages is greater than the MAD/MAE for Weighted Moving Averages. None of the above
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