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Forecasts and actual sales of MP3 players at Just Say Music are as follows: Month Forecast Actual Sales March 150 170 April 220 229 May
Forecasts and actual sales of MP3 players at Just Say Music are as follows:
Month | Forecast | Actual Sales |
March | 150 | 170 |
April | 220 | 229 |
May | 205 | 192 |
June | 256 | 241 |
July | 250 | 238 |
August | 260 | 210 |
September | 270 | 225 |
October | 280 | 179 |
- Plot the data and provide insights about the time series.
- What is the forecast for November, using a three-period moving average?
- What is the forecast for November, using a two-period moving average?
- Compute MSE for the two- and three-period moving average models and compare your results.
- Find the best number of periods for the moving average model based on MSE.
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