Please help with correct answers in details: Step by step Suppose these data show the number of gallons of gasoline sold by a gasoline distributor in Bennington, Vermont, over the past 12 weeks. Week Sales (1,000sof gallons) 1 17 2 21 3 20 4 24 5 18 6 17 7 21 8 19 9 22 10 21 11 16 12 22 (a) Compute four-week and five-week moving averages for the time series. Week Time SeriesValue 4-WeekMovingAverageForecast 5-WeekMovingAverageForecast 1 17 2 21 3 20 4 24 5 18 6 17 7 21 8 19 9 22 10 21 11 16 12 22 b) Compute the MSE for the four-week moving average forecasts. (Round your answer to two decimal places.) c) Compute the MSE for the five-week moving average forecasts. (Round your answer to two decimal places.) d) What appears to be the best number of weeks of past data (three, four, or five) to use in the moving average computation? MSE for the three-week moving average is 9.65. (Chosse the correct answer from the options below) Three weeks appears to be best, because the three-week moving average provides the smallest MSE. Three weeks appears to be best, because the three-week moving average provides the largest MSE. Four weeks appears to be best, because the four-week moving average provides the smallest MSE. Five weeks appears to be best, because the five-week moving average provides the smallest MSE. None appear better than the others, because they all provide the same MSE.

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

Please help with correct answers in details: Step by step

Suppose these data show the number of gallons of gasoline sold by a gasoline distributor in Bennington, Vermont, over the past 12 weeks.

Week	Sales (1,000s of gallons)
1	17
2	21
3	20
4	24
5	18
6	17
7	21
8	19
9	22
10	21
11	16
12	22

(a)

Compute four-week and five-week moving averages for the time series.

Week	Time Series Value	4-Week Moving Average Forecast	5-Week Moving Average Forecast
1	17
2	21
3	20
4	24
5	18
6	17
7	21
8	19
9	22
10	21
11	16
12	22

b) Compute the MSE for the four-week moving average forecasts. (Round your answer to two decimal places.)

c) Compute the MSE for the five-week moving average forecasts. (Round your answer to two decimal places.)

d) What appears to be the best number of weeks of past data (three, four, or five) to use in the moving average computation? MSE for the three-week moving average is 9.65. (Chosse the correct answer from the options below)

Three weeks appears to be best, because the three-week moving average provides the smallest MSE.

Three weeks appears to be best, because the three-week moving average provides the largest MSE.

Four weeks appears to be best, because the four-week moving average provides the smallest MSE.

Five weeks appears to be best, because the five-week moving average provides the smallest MSE.

None appear better than the others, because they all provide the same MSE.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 1 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.

Similar questions