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) = ?