A.) Compute the 3-period simple moving average forecasts. Compute the MAD and MSE for the 4-period simple moving average. B.) Compute the 4-period weighted moving average forecasts using the weights=0.25, 0.1, 0.44, and 0.3. Compute the MAD and MSE for the 3-period weighted moving average. C.) Compute the exponential smoothing forecasts using alpha=0.35. Compute the MAD and MSE for the exponential smoothing forecasts.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Forecasting 

Use the data below to compute the following:

(Forecasting/Regression)

Period (t) At or Yt
1 410
2 407
3 333
4 428
5 332
6 355
7 371
8 481
9 392

A.) Compute the 3-period simple moving average forecasts. Compute the MAD and MSE for the 4-period simple moving average.

B.) Compute the 4-period weighted moving average forecasts using the weights=0.25, 0.1, 0.44, and 0.3. Compute the MAD and MSE for the 3-period weighted moving average.

C.) Compute the exponential smoothing forecasts using alpha=0.35. Compute the MAD and MSE for the exponential smoothing forecasts.

D.) Calculate the regression line. Compute the MAD and MSE for the regression line.

E.) Use your results for A.)-D.) to determine which forecast is best. Explain your results.

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D.) Calculate the regression line. Compute the MAD and MSE for the regression line.

E.) Use your results for A.)-D.) to determine which forecast is best. Explain your results.

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