a) Construct a time series plot. What type of pattern exists in the data? The data appear to follow a trend pattern.The data appear to follow a horizontal pattern. The data appear to follow a seasonal pattern.The data appear to follow a cyclical pattern. (b) Develop three-month and four-month moving averages for this time series. (Round your answers to two decimal places.) Month Time Series Value 3-Month Moving Average Forecast 4-Month Moving Average Forecast 1 9.5 2 9.4 3 9.5 4 9.7 5 9.8 6 9.8 7 9.9 8 10.6 9 10.0 10 9.8 11 9.7 12 9.7 Does the three-month or four-month moving average provide the better forecasts based on MSE? Explain. The four-month moving average provides more accurate forecasts, because its MSE is smaller than that of the three-month moving average.The three-month moving average provides more accurate forecasts, because its MSE is smaller than that of the four-month moving average. The four-month moving average provides more accurate forecasts, because its MSE is larger than that of the three-month moving average.The three-month moving average provides more accurate forecasts, because its MSE is larger than that of the four-month moving average. (c) Using the more accurate approach, what is the moving average forecast for the next month? (Round your answer to two decimal places.)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Related questions

Question

Corporate triple-A bond interest rates for 12 consecutive months are as follows.

9.5

9.4

9.5

9.7

9.8

9.9

10.6

10.0

9.8

9.7

(a)

Construct a time series plot. What type of pattern exists in the data?

The data appear to follow a trend pattern.The data appear to follow a horizontal pattern. The data appear to follow a seasonal pattern.The data appear to follow a cyclical pattern.

(b)

Develop three-month and four-month moving averages for this time series. (Round your answers to two decimal places.)

Month	Time Series Value	3-Month Moving Average Forecast	4-Month Moving Average Forecast
1	9.5
2	9.4
3	9.5
4	9.7
5	9.8
6	9.8
7	9.9
8	10.6
9	10.0
10	9.8
11	9.7
12	9.7

Does the three-month or four-month moving average provide the better forecasts based on MSE? Explain.

The four-month moving average provides more accurate forecasts, because its MSE is smaller than that of the three-month moving average.The three-month moving average provides more accurate forecasts, because its MSE is smaller than that of the four-month moving average. The four-month moving average provides more accurate forecasts, because its MSE is larger than that of the three-month moving average.The three-month moving average provides more accurate forecasts, because its MSE is larger than that of the four-month moving average.

(c)

Using the more accurate approach, what is the moving average forecast for the next month? (Round your answer to two decimal places.)