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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)
- Calculate the sales using 2, 3, 4, 5, and 6 month moving average values.
- Forecast and plot the upcoming period’s sales using the moving average series that fits best. Explain why you chose that particular MA.
- 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 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the sales using the moving average MA approach we will calculate the average of the previous 2 3 4 5 and 6 months sales data Month Sale 2Month MA 3Month MA 4Month MA 5Month MA 6Month MA O...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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