a) Calculate a 5 year moving average to forecast the number of mergers for 2012 b) Use
Question:
a) Calculate a 5 year moving average to forecast the number of mergers for 2012
b) Use the moving average technique to determine the forecast for 2005 and 2011. Calculate measurement error using MSE and MAD
c) Calculate a 5 year weighted moving average to forecast the number of mergers for 2012. Use weights of 0, 10, 0, 15, 0, 20, 0, 25, and 0, 30 with the most recent year weighted being the largest.
d) Use regression analysis to forecast the number of mergers in 2012.
Explain why moving average method was used instead of another forecasting method. What might be another forecasting method that could prove useful.
2005…………………………………………………...61
2006…………………………………………………...83
2007………………………………………………….123
2008…………………………………………………...97
2009………………………………………………….186
2010…………………………………………………..225
2011…………………………………………………...240
Managerial Decision Modeling with Spreadsheets
ISBN: 978-0136115830
3rd edition
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair