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).

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Hospitality Hotels forecasts monthly labor needs.
(a) Given the following monthly labor fi gures, make a forecast
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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