Mop and Broom Manufacturing has tracked the number of units sold of their most p
ID: 3300890 • Letter: M
Question
Mop and Broom Manufacturing has tracked the number of units sold of their most popular mop over the past twenty-four months. This is shown.
Month
Sales
Month
Sales
Month
Sales
8
305
16
358
24
412
Generate forecasts for months 7-24 using a six-period and a three-period moving average. Use MAD to compare the forecasts
Month
Sales
Forecast 6-month Mooving Average
Forecast 3-month Mooving Average
(For forecast: round your answers to 1 decimal place, the tolerance is +/- 0.1)
(For MAD: round your answers to 1 decimal place, the tolerance is +/- 0.5. Do not round your intermediate computations.)
Mop and Broom Manufacturing has tracked the number of units sold of their most popular mop over the past twenty-four months. This is shown.
Month
Sales
Month
Sales
Month
Sales
1 239 9 310 17 369 2 248 10 335 18 378 3 256 11 348 19 367 4 260 12 353 20 383 5 271 13 355 21 394 6 280 14 368 22 393 7 295 15 379 23 4058
305
16
358
24
412
Explanation / Answer
as we know that for 3 month moving average for a month=(average of last 3 months)
and 6 month moving average for a month=(average of last 6 months)
from above :
for 6 month Forcast:
for 6 month forecast MAD =26.1
for 3 month forecast:
MAD for 3 month forecast =15.9
therefore 3 month moving average forecast is better due to lower MAD.
Month Sales Forecast 6-month Mooving Average Forecast 3-month Mooving Average 1 239 2 248 3 256 4 260 5 271 6 280 7 295 259.0 270.3 8 305 268.3 282.0 9 310 277.8 293.3 10 335 286.8 303.3 11 348 299.3 316.7 12 353 312.2 331.0 13 355 324.3 345.3 14 368 334.3 352.0 15 379 344.8 358.7 16 358 356.3 367.3 17 369 360.2 368.3 18 378 363.7 368.7 19 367 367.8 368.3 20 383 369.8 371.3 21 394 372.3 376.0 22 393 374.8 381.3 23 405 380.7 390.0 24 412 386.7 397.3Related Questions
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