Moving average (MA)

1. Calculate the sales using 2, 3, 4, 5, and 6 month moving average values.
2. Forecast and plot the upcoming period’s sales using the moving average series that fits best. Explain why you chose that particular MA.
3. Why is it inadvisable to use the Moving Average approach to forecast far into the future?

Month	Sale	Month	Sale	Month	Sale
Oct-12	13.30	Oct-13	24.01	Oct-14	50.56
Nov-12	1.70	Nov-13	32.67	Nov-14	60.06
Dec-12	11.44	Dec-13	23.19	Dec-14	61.73
Jan-13	15.52	Jan-14	34.85	Jan-15	54.14
Feb-13	13.76	Feb-14	33.22	Feb-15	59.26
Mar-13	19.71	Mar-14	35.67	Mar-15	41.49
Apr-13	12.19	Apr-14	33.45	Apr-15	56.34
May-13	12.21	May-14	27.61	May-15	53.42
Jun-13	2.03	Jun-14	22.90	Jun-15	44.94
Jul-13	15.02	Jul-14	35.72	Jul-15	57.71
Aug-13	12.79	Aug-14	28.65	Aug-15	54.78
Sep-13	13.48	Sep-14	37.13	Sep-15	68.25

Answer rating: 100% (QA)

To calculate the sales using the moving average MA approach we will calculate the average of the previous 2 3 4 5 and 6 months sales data Month Sale 2Month MA 3Month MA 4Month MA 5Month MA 6Month MA O... View the full answer