Question
Hospitality Hotels forecasts monthly labor needs. (a) Given the following monthly labor figures, make a forecast for June using a three-period moving average and a
Hospitality Hotels forecasts monthly labor needs. (a) Given the following monthly labor figures, make a forecast for June using a three-period moving average and a five-period moving average. (Round answers to 2 decimal places, e.g. 15.25.)
Month | Actual Values |
January | 35 |
February | 45 |
March | 44 |
April | 44 |
May | 46 |
3 - Period Moving Average = 44.67
5 - Period Moving Average = 42.8
(b) What would be the forecast for June using the nave method? (Round answers to 2 decimal places, e.g. 15.25.)
Forecast for June = 46
(c) If the actual labor figure for June turns out to be 45, what would be the forecast for July using each of these models? (Round answers to 2 decimal places, e.g. 15.25.)
3 - Period Moving Average = 45
5 - Period Moving Average = 44.8
Naive method = 45
(d) Compare the accuracy of these models using the mean absolute deviation (MAD). (Round answers to 2 decimal places, e.g. 15.25.)
MAD (3-period) = ?
MAD (5-period) = ?
MAD (naive) = ?
(e) Compare the accuracy of these models using the mean squared error (MSE). (Round answers to 2 decimal places, e.g. 15.25.)
MSE (3-period) = ?
MSE (5-period) = ?
MSE (naive) = ?
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