Consider the following gasoline sales time series data. Click on the webfile logo to reference the data.
Question:
Consider the following gasoline sales time series data. Click on the webfile logo to reference the data.
a. Compute four-week and five-week moving averages for the time series (to 2 decimals).
b. Compute the MSE for the four-week and five-week moving average forecasts (to 2 decimals).
MSE (4-Week) ______
MSE (5-Week) ______
c. What appears to be the best number of weeks of past data (three, four, or five) to use in the moving average computation? Recall that MSE for the three-week moving average is 10.22.
(Select your answer: The 3-week moving average provides the smallest MSE, The 4-week moving average provides the smallest MSE, The 5-week moving average provides the smallest MSE)
Essentials of Business Analytics
ISBN: 978-1285187273
1st edition
Authors: Jeffrey Camm, James Cochran, Michael Fry, Jeffrey Ohlmann , David Anderson, Dennis Sweeney, Thomas Williams