Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Company A wants to test three major forecasting techniques on a historical data that they have in terms of the forecasting accuracy on a certain

Company A wants to test three major forecasting techniques on a historical data that they have in terms of the forecasting accuracy on a certain products weekly sales data. They have recorded the sales values in the last 13 weeks and you can see the corresponding value of each week as a time series data in the below table.

Period

Actual

1

352

2

324

3

338

4

400

5

360

6

263

7

276

8

396

9

309

10

300

11

327

12

371

13

287

Please use this historical data to perform the following actions:

Plot the time series as a scatter plot (4 pts)

Make forecasts starting from the 9th period for five periods using moving average method (you can choose n=5; that is the number of historical data points you should use in calculation) (4 pts)

Make forecasts starting from the 9th period for five periods using weighted moving average method (you can use the following weight scheme wt-1= 0.3, wt-2= 0.2, wt-3= 0.2, wt-4= 0.15, wt-5= 0.15 ) (4 pts)

Make forecasts starting from the 9th period for five periods using exponential smoothing method (you can use smoothing factor as 0.25 ) . (4 pts)

Calculate the accuracy metrics we covered in class for all the methods you used above. Make a comparison between the techniques. (HINT: The numbers in red italic is used for performance assessment. (3 pts)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Make It Complete A Guide Of Knowledge Advice And Tips For Internal Audit And Compliance

Authors: Mónica Ramírez Chimal

1st Edition

6202304456, 978-6202304450

More Books

Students also viewed these Accounting questions

Question

Discuss the concept of dirty read in transaction isolation levels.

Answered: 1 week ago

Question

6. How do histories influence the process of identity formation?

Answered: 1 week ago