Hi! I need help with this exercise... how I can resolve this exercise step by step. thanks!

Requirement 1 :

You are a manager at a medium sized manufacturing operation that sells a customized product directly to the consumers and the data pattern is linear but it can have the occasional randomness. The causes of this randomness are never apparent until after the event.

Complete the corporate forecast for this product using the data below to completea 3 and 5 period simple moving average forecast for the next year (time period 8). For the judgmental forecasting component use the current economic situation.

Time Period Historical Demand

1 417

2 425

3 508

4 593

5 580

6 469

7 553

Requirement 2:

Select the better forecasting model for the data above. (E.g.: 3 year or 5 period simple moving average) and support your answer. (Hint: Calculate the MAD, MSE and MAPE for all of the 3 and 5 period forecasts you can calculate for the above data.)