Question
Number new bicycle sales at a local bicycle shop are shown in the following table. a. Develop a 3-month moving average forecast and compute the
Number new bicycle sales at a local bicycle shop are shown in the following table.
a. Develop a 3-month moving average forecast and compute the MAD.
b. Develop a 4-month moving average forecast and compute the MAD.
c. Estimate demand again with a 3-month weighted moving average in which sales in the most recent month are given a weight of 2 and sales in the previous 2 months are each given a weight of 1. (Wt-1 = 2, Wt-2= 1, Wt-3 = 1). What is the MAD?
d. Using MAD, determine which forecasting method (3-mo MA, 4-mo MA, 3-mo WMA) is more accurate.
Month | Jan. | Feb. | Mar. | Apr. | May | June | July | Aug. | Sept. | Oct. | Nov. | Dec. |
Bike Sales | 10 | 12 | 13 | 16 | 19 | 23 | 26 | 30 | 21 | 18 | 16 |
|
Step by Step Solution
3.51 Rating (148 Votes )
There are 3 Steps involved in it
Step: 1
Given MAD mean value ef Absolucte Essos Absolute Esor Absolute value ErooY Eos Bike sales fose cast ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Applied Regression Analysis And Other Multivariable Methods
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg
5th Edition
1285051084, 978-1285963754, 128596375X, 978-1285051086
