Hospitality Hotels forecasts monthly labor needs.(a) Given the following monthly labor fi gures, make a forecastfor June using a three-period moving average and a fi veperiod moving average. Month Actual ValuesJanuary 32February 41March 38April 39May 43 (b) What would be the forecast for June using the naïvemethod?(c) If the actual labor fi gure for June turns out to be 41, whatwould be the forecast for July using each of these models?(d) Compare the accuracy of these models using the meanabsolute deviation (MAD).(e) Compare the accuracy of these models using the meansquared error (MSE).
Hospitality Hotels forecasts monthly labor needs.(a) Given the following monthly labor fi gures, make a forecastfor June using a three-period moving average and a fi veperiod moving average. Month Actual ValuesJanuary 32February 41March 38April 39May 43 (b) What would be the forecast for June using the naïvemethod?(c) If the actual labor fi gure for June turns out to be 41, whatwould be the forecast for July using each of these models?(d) Compare the accuracy of these models using the meanabsolute deviation (MAD).(e) Compare the accuracy of these models using the meansquared error (MSE).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Hospitality Hotels forecasts monthly labor needs.
(a) Given the following monthly labor fi gures, make a
for June using a three-period moving average and a fi veperiod moving average.
Month Actual Values
January 32
February 41
March 38
April 39
May 43
(b) What would be the forecast for June using the naïve
method?
(c) If the actual labor fi gure for June turns out to be 41, what
would be the forecast for July using each of these models?
(d) Compare the accuracy of these models using the mean
absolute deviation (MAD).
(e) Compare the accuracy of these models using the mean
squared error (MSE).
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