INDIVIDUAL PROBLEM 2

BUSINESS DECISION ANALYSIS

Question 1

The number of cans of soft drinks sold in a machine each week is recorded below. Develop forecasts using a three-period moving average. 338, 219, 278, 265, 314, 323, 299, 259, 287, 302

Question 2

Use a four-period moving average to forecast attendance at baseball games. Historical records show 5346, 7812, 6513, 5783, 5982, 6519, 6283, 5577, 6712, 7345

Question 3

The average SAT verbal score for students from one high school over the last ten exams is:

508, 490, 502, 505, 493, 506, 492, 490, 503, 501

Do the scores support an increasing or a decreasing trend?

Question 4

Weekly sales of the Weber food processor for the past ten weeks have been:

Week	Sales	Week	Sales
1	980	6	990
2	1040	7	1030
3	1120	8	1260
4	1050	9	1240
5	960	10	1100

a. Determine, on the basis of minimizing the mean square error, whether a three-period or four-period simple moving average model gives a better forecast for this problem.

b. For each model, forecast sales for week 11.