QUESTION $3(20$ Marks$)$

The information shown in the table below represents the monthly operating profit generated by Takealot

during the $2022$ financial year.

INFORMATION

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Operating profit, R

million $91422151917231820253426$

$3\mathrm{.}1.$ Compute the three$-$month weighted moving average $(3$MWMA$)$ forecasts for the April $2022$ to Jan $2023$

period, using weights of $0\mathrm{.}1,0\mathrm{.}3,$ and $0\mathrm{.}6($oldest data to newest data, respectively$).$

$(5$ marks$)$

$3\mathrm{.}2.$ Compute the four$-$month weighted moving average $(4$MWMA$)$ forecasts for the May $2022$ to Jan $2023$

period, using weights of $0\mathrm{.}1,0\mathrm{.}2,0\mathrm{.}3,$ and $0\mathrm{.}4($oldest data to newest data, respectively$).$

$(5$ marks$)$

$3\mathrm{.}3.$ Calculate the Mean Absolute Percentage Error $($MAPE$)$ of the three$-$month weighted moving average

$(3$MWMA$)$ forecasts.

$(4$ marks$)$

$3\mathrm{.}4.$ Calculate the Mean Absolute Percentage Error $($MAPE$)$ of the four$-$month weighted moving average

$(4$MWMA$)$ forecasts.

$(4$ marks$)$

$3\mathrm{.}5.$ Which of the two weighted moving average methods is better at forecasting Takealot$$s monthly

operating profit?

$(2$ marks$)$