Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Question
Based on the following equation for a moving average
What happens if we increase the time periods in our moving average forecast to six weeks opposed to three?
Group of answer choices
It would be more accurate because it includes more data.
There would be no change.
It would be less sensitive to changes.
It would be better at predicting a trend.
Transcribed Image Text:¶
¶
Situation: The "Small Town Restaurant" uses a forecast of weekly sales revenue to plan their
inventory ordering and staffing for the upcoming week. They have been using a regression
forecast for the past year and wonder if it is the most accurate method. You have been brought in
to determine if another forecasting technique would be more accurate. Data for their weekly
sales for the past year is below:
¶
Week Revenue. X Week
1
2 $3,016
3 $3,062.¤ ¤
4
$ 3,074. X
5
$3,002.
6
----3,054-¤¤
7 $3,002.¤ ¤
8
9
$3,078¤ ¤
10 $3,010- X
11 $3,148.
12
$3,146
$3,198.
13
X
¶
$3,157.**
$
Forecasting S
$ 2,984-¤¤
A
- Small Town Restaurant
Revenue.
14 $3,157 ¤
$3,016
¤
15
16 $3,019
¤
17 $3,045
¤
18
19
$3,046 ¤
$3,157 ¤
$3,016 ¤
$3,078 ¤
22 $2,984
20
21
¤
23 $3,002 ¤
24 $3,054 ¤
25 $3,002 ¤
26 $2,941 X
A
Week
Revenue.
27 $2,899 ¤
28 $2,942
¤
29 $3,062 X
¤
30 $3,074
31 $3,013 ¤
¤
32 $3,067
33 $3,148 ¤
34 $3,146
¤
35 $3,198 ¤
36 $3,082 ¤
37 $3,146 ¤
38 $3,150 ¤
39 $3,221 ¤
X
B
Week Revenue. ¤
40 $3,298.
41 $3,201.
42 $3,156.
43 $3,017. X
44 $3,156.
45 $3,097.
46 $ 2,978. X
47 $3,120
48 $3,156.
49 $3,048.
50 $2,948.
51 $ 2,840.
52 $2,921.
X
$ 159,532 Annual total
You will use this data in the next few steps to complete various time series forecasts and
compare them to determine the most accurate method.
¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤
X{
X{
X{
X{
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