A restaurant wants to forecast its weekly sales. Historical data (in dollars) for fifteen weeks are shown below. Use Excel and the Moving Average template to answer the following questions. Time PeriodObservation1 1,5682 1,5043 1,3994 1,3895 1,1996 1,3857 1,5748 1,3279 1,32810 1,59011 1,36412 1,59613 1,67114 1,63615 1,332What is the forecast for week 16, using a two-period moving average? Round your answer to the nearest cent.$ What is the forecast for week 16, using a three-period moving average? Round your answer to the nearest cent.$ Compute MSE for the two- and three-period moving average models to determine the best model. Do not round intermediate calculations. Round your answers to two decimal places. 2-period MA3-period MAMSE

Forecasting is the process of predicting the future demand based on the previous or historic data or…

Answered: What is the forecast for week 16, using…

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...

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Question

A restaurant wants to forecast its weekly sales. Historical data (in dollars) for fifteen weeks are shown below. Use Excel and the Moving Average template to answer the following questions.

Time
Period	Observation
1		1,568
2		1,504
3		1,399
4		1,389
5		1,199
6		1,385
7		1,574
8		1,327
9		1,328
10		1,590
11		1,364
12		1,596
13		1,671
14		1,636
15		1,332

What is the forecast for week 16, using a two-period moving average? Round your answer to the nearest cent.

$
What is the forecast for week 16, using a three-period moving average? Round your answer to the nearest cent.

$
Compute MSE for the two- and three-period moving average models to determine the best model. Do not round intermediate calculations. Round your answers to two decimal places.

2-period MA 3-period MA

MSE