Month Sales (in millions of packs) 1 1335 2 1334 3 1340 4 1342 5 1353 6
Question:
Month Sales (in millions of packs) 1 1335 2 1334 3 1340 4 1342 5 1353 6 1358 7 1375 8 1376 9 1407 10 1423 11 1470 12 1498
1. Second, the manager wants to see how a weighted moving average would perform (irrespective of whether or not this is a suitable method for this data). Compute a 3-month weighted moving average forecast of sales for months 4 to 12 with weights of 0.7, 0.2, 0.1 (most recent, next most recent, and third most recent week, respectively). What is the forecast for the 10th month? If your answer is not an integer, provide at least three decimal places, e.g., 7.500.
2. Compute the Mean Absolute Deviation (MAD) of the forecasts for months 4 to 12 from the 3-month weighted moving average method in Question 6. If your answer is not an integer, provide at least three decimal places, e.g., 7.500.