(a) Compute four-week and five-week moving averages for the time series. 4-Week 5-Week Time Series Value Moving Average Forecast Moving Average Forecast Week 1 17 2 21 3 19 24 5 18 16 7 20 8 18 9 22 10 20 11 15 12 23 (b) Compute the MSE for the four-week moving average forecasts. (Round your answer to two decimal places.) Compute the MSE for the five-week moving average forecasts. (Round your to two decimal places.)

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(a) Compute four-week and five-week moving averages for the time series.
4-Week
5-Week
Time Series
Moving
Average
Forecast
Moving
Average
Forecast
Week
Value
1
17
2
21
19
4
24
5
18
6
16
7
20
8
18
22
10
20
11
15
12
23
(b) Compute the MSE for the four-week moving average forecasts. (Round your answer to two decimal places.)
Compute the MSE for the five-week moving average forecasts. (Round your answer to two decimal places.)
Transcribed Image Text:(a) Compute four-week and five-week moving averages for the time series. 4-Week 5-Week Time Series Moving Average Forecast Moving Average Forecast Week Value 1 17 2 21 19 4 24 5 18 6 16 7 20 8 18 22 10 20 11 15 12 23 (b) Compute the MSE for the four-week moving average forecasts. (Round your answer to two decimal places.) Compute the MSE for the five-week moving average forecasts. (Round your answer to two decimal places.)
(c) What appears to be the best number of weeks of past data (three, four, or five) to use in the moving average computation? MSE for the three-week moving average is 12.48.
Three weeks appears to be best, because the three-week moving average provides the smallest MSE.
Three weeks appears to be best, because the three-week moving average provides the largest MSE.
Four weeks appears to be best, because the four-week moving average provides the smallest MSE.
Five weeks appears to be best, because the five-week moving average provides the smallest MSE.
None appear better than the others, because they all provide the same MSE.
Transcribed Image Text:(c) What appears to be the best number of weeks of past data (three, four, or five) to use in the moving average computation? MSE for the three-week moving average is 12.48. Three weeks appears to be best, because the three-week moving average provides the smallest MSE. Three weeks appears to be best, because the three-week moving average provides the largest MSE. Four weeks appears to be best, because the four-week moving average provides the smallest MSE. Five weeks appears to be best, because the five-week moving average provides the smallest MSE. None appear better than the others, because they all provide the same MSE.
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