SHOW FORMULA AND SOLUTION IN EXCEL:

REFERENCE TO PROBLEM 1 -

7. Consider Problem 1 data. Compute the Mean Square Error (MSE), Mean Absolute Deviation (MAD), and Mean Absolute Percentage Error (MAPE) for: a. The four-month moving average forecast (from May through December) b. The exponential smoothing forecast (from March through December). For this data, which forecasting method seems better than the other on all these measures? 1. Consider the data in the table below for monthly cereal sales ($000) Month Sales ($000) January $ 1,212 February 1,321 March 1,278 April 1,341 May 1,257 June 1,287 July August 1,111 September 1,145 October 1,150 November 1,298 December 1,331 1,189 Input these data into an Excel spreadsheet and do the following: a. Calculate a four-month moving average forecast. What is your forecast for month 13? b. Use exponential smoothing with a smoothing factor of 0.30 to calculate the forecast for month 13