Consider the daily revenues of a store shown in the following table: Day 1 2 3...

 

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Consider the daily revenues of a store shown in the following table: Day 1 2 3 4 5 6 7 8 9 10 Revenue $622 $498 $608 $712 $588 $656 $689 $675 $706 $705 a. Create a weighted moving average (WMA) model with k-3, and determine the optimal values of the weights that minimize MSE? (You need to start with any trial values of the weights, and then use Solver to determine the optimal values of the weights.) (8 points) b. What is the forecast for Day 11? (2 points) Consider the daily revenues of a store shown in the following table: Day 1 2 3 4 5 6 7 8 9 10 Revenue $622 $498 $608 $712 $588 $656 $689 $675 $706 $705 a. Create a weighted moving average (WMA) model with k-3, and determine the optimal values of the weights that minimize MSE? (You need to start with any trial values of the weights, and then use Solver to determine the optimal values of the weights.) (8 points) b. What is the forecast for Day 11? (2 points)

Answer rating: 100% (QA)

a Here are the steps to determine the optimal weights that minimize the MSE ... View the full answer