Question: Period Actual Demand Moving Average Forecast with m = 2 Moving Average Forecast with m = 3 1 1 0 2 5 3 1 5

Period Actual Demand Moving Average Forecast with m =2 Moving Average Forecast with m =3
110
25
3157.5
4101010
5512.510
6157.510
The table above shows some data and moving average forecasts for m =2 and m =3. Based on this data and your general knowledge of forecasting, does a moving average forecast become more or less responsive to changes in a data series when more data points are included in the average? Why would a forecaster make this modeling choice? What is the forecast for Period 7 with a moving average of 2? What is the forecast for period 7 with a moving average of 3?

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