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The owner of an online video rental service has recorded the following rentals e

ID: 331405 • Letter: T

Question

The owner of an online video rental service has recorded the following rentals each week:


a. Use a three-week moving average to forecast sales for each of the weeks 4 through 9. (Round your answer to 2 decimal places.)



b. Use a four-week moving average to forecast sales for each of the weeks 5 through 9. (Round your answer to 2 decimal places.)


c. Using error data from only Periods 5-8 for both forecast methods, which forecast method would you recommend based on the MAD measure?

Week: 1 2 3 4 5 6 7 8 Rentals: 1619 1592 1212 1666 1664 1628 1624 1244

Explanation / Answer

forecast(3 month)

forecast(4 month)

Week: 1 2 3 4 5 6 7 8 Rentals: 1619 1592 1212 1666 1664 1628 1624 1244

forecast(3 month)

1474.333333 1490 1514 1652.666667 1638.666667

forecast(4 month)

1522.25 1533.5 1542.5 1645.5
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