The U.S. Census Bureau publishes data on factory orders for all manufacturing, durable goods, and nondurable goods
Question:
a. Use these data to develop forecasts for the years 6 through 13 using a 5-year moving average.
b. Use these data to develop forecasts for the years 6 through 13 using a 5-year weighted moving average. Weight the most recent year by 6, the previous year by 4, the year before that by 2, and the other years by 1.
c. Compute the errors of the forecasts in parts (a) and (b) and observe the differences in the errors of the forecasts.
Year ... Factory Orders ($ billions)
1 ..... 2,512.7
2 ..... 2,739.2
3 ..... 2,874.9
4 ..... 2,934.1
5 ..... 2,865.7
6 ..... 2,978.5
7 ..... 3,092.4
8 ..... 3,356.8
9 ..... 3,607.6
10 ..... 3,749.3
11 ..... 3,952.0
12 ..... 3,949.0
13 ..... 4,137.0
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Related Book For
Business Statistics For Contemporary Decision Making
ISBN: 978-1118749647
8th edition
Authors: Black Ken
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