A retail store records customer demand during each sales period. The data has been collected in the Microsoft Excel Online file below. Use the Microsoft Excel Online file below to develop three-period and four-period moving average forecasts and answer the following questions. Questions 1. What is the forecast for the 13th period based on the three-period moving average? Round your answer to two decimal places. 2. What is the MSE for the three-period moving average? Round your answer to two decimal places. 4. What is the forecast for the 13th period based on the four-period moving average? Round your answer to two decimal places. 5. What is the MSE for the four-period moving average? Round your answer to two decimal places. 7. Which forecast is the best based on the MSE value?
A retail store records customer demand during each sales period. The data has been collected in the Microsoft Excel Online file below. Use the Microsoft Excel Online file below to develop three-period and four-period moving average forecasts and answer the following questions. Questions 1. What is the forecast for the 13th period based on the three-period moving average? Round your answer to two decimal places. 2. What is the MSE for the three-period moving average? Round your answer to two decimal places. 4. What is the forecast for the 13th period based on the four-period moving average? Round your answer to two decimal places. 5. What is the MSE for the four-period moving average? Round your answer to two decimal places. 7. Which forecast is the best based on the MSE value?
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...
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Question
A retail store records customer demand during each sales period. The data has been collected in the Microsoft Excel Online file below. Use the Microsoft Excel Online file below to develop three-period and four-period moving average forecasts and answer the following questions.
Questions
1. What is the
2. What is the MSE for the three-period moving average? Round your answer to two decimal places.
4. What is the forecast for the 13th period based on the four-period moving average? Round your answer to two decimal places.
5. What is the MSE for the four-period moving average? Round your answer to two decimal places.
7. Which forecast is the best based on the MSE value?
Transcribed Image Text:### Moving Average Forecasting
#### Overview
This spreadsheet demonstrates the moving average forecasting method for predicting future values based on past periods. It includes demand data over 12 time periods and aims to predict the next period's demand using moving averages with different numbers of periods.
#### Periods in Moving Average: 3
- **Time Periods and Demand:**
- Time Period 1: Demand = 92
- Time Period 2: Demand = 94
- Time Period 3: Demand = 89
- Time Periods 4-12: Demand values range from 90 to 96
- **Forecasting:**
- The forecast cells are left blank for time periods 4 to 12.
- **Errors:**
- Error and Error^2 (Error Squared) columns are calculated to measure forecasting inaccuracies.
- **Formulas:**
- This section displays `#N/A`, indicating that formula calculations are yet to be implemented or are missing data.
- **Next Period Forecast:**
- Period 13: Forecast = (blank)
- **Mean Squared Error (MSE):**
- MSE cell is blank, suggesting that error calculations need to be completed.
#### Periods in Moving Average: 4
- **Time Periods and Demand:**
- Time Period 1: Demand = 92
- Time Period 2: Demand = 94
- Time Period 3: Demand = 89
- Time Periods 4-12: Demand values range from 90 to 96
- **Forecasting:**
- Similar to the 3-period average, forecast cells for periods 4 to 12 are blank.
- **Errors:**
- The Error and Error^2 sections are left to be calculated.
- **Formulas:**
- Displays `#N/A`, similar to the 3-period setup, indicating a lack of implemented formulas.
- **Next Period Forecast:**
- Period 13: Forecast = 93
- **Mean Squared Error (MSE):**
- MSE value is blank, indicating the need for error calculation completion.
### Diagram Explanation
The spreadsheet contains rows for time periods, demand, forecasts, errors, and squared errors. The section for formulas suggests calculations are to be input. Each setup (3-period and 4-period) contains similar structures but with different potential forecast
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