Week | Sales (1000s of gallons) |
1 | 16 |
2 | 22 |
3 | 19 |
4 | 24 |
5 | 18 |
6 | 15 |
7 | 19 |
8 | 19 |
9 | 23 |
10 | 20 |
11 | 16 |
12 | 23 |
a. Using a weight of 1/2 for the most recent observation, 1/3 for the second most recent observation, and 1/6 third the most recent observation, compute a three-week weighted moving average for the time series (to 2 decimals). Enter negative values as negative numbers.
b. Compute the MSE for the weighted moving average in part (a).
For calculating forecast for week 4, do (1/2) * 19 + (1/3) * 22 + (1/6) * 16 = 19.50
Error = Sales - Forecast
Similarly for others
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