Question: A restaurant wants to forecast its weekly sales. Historical data (in dollars) for fifteen weeks are shown below and can be found on the worksheet

A restaurant wants to forecast its weekly sales. Historical data (in dollars) for fifteen weeks are shown below and can be found on the worksheet C11P6 in the OM5 Data & Calculations Workbook.
a. Plot the data and provide insights about the time series.
b. What is the forecast for week 16, using a two-period moving average?
c. What is the forecast for week 16, using a three-period moving average?
d. Compute MSE for the two- and three-period moving average models and compare your results.
e. Find the best number of periods for the moving average model based on MSE.

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a The data are relatively stable but appear to be trending up some b Forecast for week 16 1312 ... View full answer

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