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Moving average (MA) Calculate the sales using 2, 3, 4, 5, and 6 month moving average values. Forecast and plot the upcoming periods sales using

Moving average (MA)

  1. Calculate the sales using 2, 3, 4, 5, and 6 month moving average values.
  2. Forecast and plot the upcoming periods sales using the moving average series that fits best. Explain why you chose that particular MA.
  3. Why is it inadvisable to use the Moving Average approach to forecast far into the future?

Month

Sale

Month

Sale

Month

Sale

Oct-12

13.30

Oct-13

24.01

Oct-14

50.56

Nov-12

1.70

Nov-13

32.67

Nov-14

60.06

Dec-12

11.44

Dec-13

23.19

Dec-14

61.73

Jan-13

15.52

Jan-14

34.85

Jan-15

54.14

Feb-13

13.76

Feb-14

33.22

Feb-15

59.26

Mar-13

19.71

Mar-14

35.67

Mar-15

41.49

Apr-13

12.19

Apr-14

33.45

Apr-15

56.34

May-13

12.21

May-14

27.61

May-15

53.42

Jun-13

2.03

Jun-14

22.90

Jun-15

44.94

Jul-13

15.02

Jul-14

35.72

Jul-15

57.71

Aug-13

12.79

Aug-14

28.65

Aug-15

54.78

Sep-13

13.48

Sep-14

37.13

Sep-15

68.25

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