B.) calculate the MAD for the forecast in part a. (Type and interfere or decimal
ID: 3371678 • Letter: B
Question
B.) calculate the MAD for the forecast in part a. (Type and interfere or decimal do not round)
C.) forecast the average price for a 32inch LCD tv during the fourth quarter of 2011 using a three period simple moving average (Round to the nearest dollar as needed)
D.) calculate the MAD for the forecast in part c (Round to two decimal places as needed)
E.) which forecast would you choose ? | Homework: Fili n the blank. Ch 16, 5pm-7/6, no time limits ( Score: 0 of 3 pts 4017(4 complete ) ? HW Score: 21.5%, 4 52 012 x16.2.11 Question Help data show the average prices for a 32-inch LCD television over a six-year penod based on fourth-quarter results Complete parts a through e below Price a) Forecast the average price of a 32-inch LCD television during the fourth quarter of 2011 using a two-period simple moving average The forecasted average price of a 32-inch LCD television during the fourh quarter of 2011 using a two period simple moving average is s Round to the nearest dollar as needed )
Explanation / Answer
a)
The 2 period moving average is obtained by taking the average of two succesive period as given below,
Answer = 430
b)
The Mean Absolute Deviation is obtained by taking the average of absolute deviation ( error) as shown belows,
MAD = 258.125
c)
The 3 period moving average is obtained by taking the average of three succesive period as given below,
Answer = 479.6667
d)
The Mean Absolute Deviation is obtained by taking the average of absolute deviation ( error) as shown belows,
MAD = 309.2222
e)
The MAD for 2-MA is smaller than 3-MA hence 2-MA will be prefered over 3-MA
Year Price 2-MA forecast 2005 1507 2006 884 2007 719 (1507+884)/2 = 1195.5 2008 579 (884+719)/2 = 801.5 2009 510 (719+579)/2 = 649 2010 350 (579+510)/2 = 544.5 2011 (510+350)/2 = 430Related Questions
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