Chapter $7$ homework

$1-$ Using the data in following table,

MONTH SALES

January $908$

February $1235$

March $804$

April $1019$

May $1151$

June $1383$

July $894$

August $1255$

September $1087$

October $1382$

November $957$

December $1254$

a$)$ Compute a $3-$month moving forecast of Sales from April through December and for the next month, January. Compute the MAD for the forecast.

b$)$ Compute a $6-$month moving forecast of Sales from July through December and for the next month, January. Compute the MAD for the forecast.

c$)$ Compute a weighted $3-$month moving forecast of Sales from April through December and for the next month, January, using weights of $0\mathrm{.}50($most recent data$),0\mathrm{.}30,$ and $0\mathrm{.}20($most distant data$).$ Compute the MAD for the forecast.

D$)$ Compare the forecasts you computed by using moving forecast model from part a$,$ b$,$ and c$.$ Which forecasting model does a better job?