Suppose these data show the number of gallons of gasoline sold by a gasoline distributor in Bennington, Vermont, aver the past 12 weeks. Sales (1.000s of gallons) Week 16 2 20 18 22 17 6 15 20 18 22 10 20 11 15 12 22 (a) Using a weight of for the most recent observation, for the second most recent observation, and for third most recent observation, compute a three-week weighted moving average for the time series. (Round your answers to two decimal places.) Time Series Value Weighted Moving Average Forecast Week 16 20 3 18 4 22 20 17 19 Jx O 15 20 18 22 10 20 11 15 4 12 22 (b) Compute the MSE for the weighted moving average in part (a). MSE Do you prefer this weighted moving average to the unweighted moving average? The MSE for the unweighted moving average is 10.91. O The unweighted moving average is preferred because it has a larger MSE compared to the weighted moving average. O The weighted moving average is preferred because it has a smaller MSE compared to the uriweighted moving average. O The weighted moving average is preferred because it has a larger MSE compared to the unweighted moving average. t hecause it has O The unvoeinhted moocing averane is preferred beca a smaler MCF comnarnd to the weinhted movieg average

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Suppose these data show the number of gallons of gasoline sold by a gasoline distributor in Bennington, Vermont, over the past 12 weeks.
Sales (1,000s
Week
of gallons)
16
20
18
4
22
17
6
15
20
18
22
10
20
11
15
12
22
(a) Using a weight of- - for third most recent observation, compute a three-week weighted moving average for the time series. (Round your answers to two decimal places.)
for the most recent observation, - for the second most recent observation, and .
Weighted Moving
Average Forecast
Time Series
Week
Value
1
16
2
20
3
18
22
20
5
17
19
15
7
20
8
18
9
22
10
20
11
15
12
22
(b) Compute the MSE for the weighted moving average in part (a).
MSE =
Do you prefer this weighted moving average to the unweighted moving average? The MSE for the unweighted moving average is 10.91.
O The unweighted moving average is preferred because it has a larger MSE compared to the weighted moving average.
O The weighted moving average is preferred because it has a smaller MSE compared to the unweighted moving average.
O The weighted moving average is preferred because it has a larger MSE compared to the unweighted moving average.
O The unweighted moving average is preferred because it has a smaller MSE compared to the weighted moving average.
Transcribed Image Text:Suppose these data show the number of gallons of gasoline sold by a gasoline distributor in Bennington, Vermont, over the past 12 weeks. Sales (1,000s Week of gallons) 16 20 18 4 22 17 6 15 20 18 22 10 20 11 15 12 22 (a) Using a weight of- - for third most recent observation, compute a three-week weighted moving average for the time series. (Round your answers to two decimal places.) for the most recent observation, - for the second most recent observation, and . Weighted Moving Average Forecast Time Series Week Value 1 16 2 20 3 18 22 20 5 17 19 15 7 20 8 18 9 22 10 20 11 15 12 22 (b) Compute the MSE for the weighted moving average in part (a). MSE = Do you prefer this weighted moving average to the unweighted moving average? The MSE for the unweighted moving average is 10.91. O The unweighted moving average is preferred because it has a larger MSE compared to the weighted moving average. O The weighted moving average is preferred because it has a smaller MSE compared to the unweighted moving average. O The weighted moving average is preferred because it has a larger MSE compared to the unweighted moving average. O The unweighted moving average is preferred because it has a smaller MSE compared to the weighted moving average.
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