Develop three-month and four-month moving averages for this time series. If required, round your answers to two decimal places. Enter the Mean Square Errors for the three-month and the four-month moving average forecasts. If needed, round your answers to three decimal digits.
Develop three-month and four-month moving averages for this time series. If required, round your answers to two decimal places. Enter the Mean Square Errors for the three-month and the four-month moving average forecasts. If needed, round your answers to three decimal digits.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
| (b) | Develop three-month and four-month moving averages for this time series. |
| If required, round your answers to two decimal places. |
| Enter the Mean Square Errors for the three-month and the four-month moving average |
Transcribed Image Text:### Time Series Analysis: Moving Averages
**Objective:**
Develop three-month and four-month moving averages for the given time series data. If required, round your answers to two decimal places.
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**Data Table:**
| Month | Sales | 3 Month Moving Average | 4 Month Moving Average |
|-------|-------|------------------------|------------------------|
| 1 | 9.6 | | |
| 2 | 9.4 | | |
| 3 | 9.2 | | |
| 4 | 9.7 | 9.40 | |
| 5 | 9.8 | 9.43 | 9.48 |
| 6 | 9.9 | 9.57 | 9.53 |
| 7 | 9.7 | 9.80 | 9.65 |
| 8 | 10.6 | 9.80 | 9.78 |
| 9 | 9.9 | 10.07 | 10.00 |
| 10 | 9.6 | 10.07 | 10.03 |
| 11 | 9.7 | 10.03 | 9.95 |
| 12 | 9.5 | 9.73 | 9.95 |
*Correct calculations for the moving averages are indicated by check marks.*
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**Mean Square Errors Calculation:**
Enter the Mean Square Errors (MSE) for the three-month and the four-month moving average forecasts. Round answers to three decimal digits if needed.
- **3-Month Moving Average MSE:** 0.170 (incorrect)
- **4-Month Moving Average MSE:** 0.229 (incorrect)
*Note: The check marks indicate correct calculations for moving averages, while incorrect results are marked with an 'X'.*
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