Month Year Automobile Tire Sales January 2017 55 February 2017 57 March 2017 59 April 2017 60 May 2017 62 June 2017 66 July 2017 68 August 2017 90 September 2017 86 October 2017 86 November 2017 88 December 2017 92 Compute a two-month moving average. What is the forecast for January 2018? b) Compute a three-month moving average. What is the forecast for January 2018? c) Compute a weighted 2-month moving average with weights of .3 and .7 to forecast sales for January 2018. (The weight of .7 is for the most recent month). d) Calculate the MAD for the 3 models. Based on the MAD, which of the 3 models gives a better forecast. e) Compute the MSE for the 3 models. Based on the MSE, which of the 3 models gives a better forecast?
Added by Beatriz R.
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Moving average for January 2018 = (92 + 88) / 2 = 90 Show more…
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