Forecasting Handouts 1. The marketing department for a major retailor tracks sales and advertising expenditures each month. Data from the past nine months and regression results from the marketing analytic team appear in the following tables. Based on the information provided above, answer the following questions: a) Interpret the equation coefficients b) Interpret the values for the coefficient of determination (i.e., R2 ) 2. Calculate three forecasts using the following data. First, for periods 4 through 6 , develop the exponentially smoothed forecasts using a forecast for period 3(F3) of 45.0 and an alpha of 0.4 . Second, calculate the three-period moving-average forecast for periods 4 through 6 . Third, calculate the weighted moving average for periods 4 through 6 , using weights of .70, .20, and .10, with 0.70 applied to the most recent data. Please round your forecasts and MSE to the nearest whole number. a) Calculate the mean squared error (MSE) for each forecasting procedure. b) Which forecasting procedure would you select? Why