The Saki motorcycle dealer in the MinneapolisSt. Paul area wants to make an accurate forecast of demand

Question:

The Saki motorcycle in the Minneapolis–St. Paul area wants to make an accurate forecast of demand for the Saki Super TXII motorcycle during the next month. Because the manufacturer is in Japan, it is difficult to send motorcycles back or reorder if the proper number is not ordered a month ahead. From sales records, the has accumulated the following data for the past year:
Month ...... Motorcycle Sales
January ....... 9
February ..... 7
March ....... 10
April ....... 8
May ....... 7
June ...... 12
July ....... 10
August ..... 11
September .... 12
October ..... 10
November .... 14
December ..... 16
a. Compute a 3-month moving average forecast of demand for April through January (of the next year).
b. Compute a 5-month moving average forecast for June through January.
c. Compare the two forecasts computed in (a) and (b), using MAD. Which one should the use for January of the next year?

Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...