Question

Refer to the gasoline sales time series data in the given table.

Week	Sales (1,000s of gallons)
1	16
2	22
3	17
4	23
5	15
6	17
7	21
8	19
9	20
10	18
11	15
12	23

(a)

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

If required, round your answers to two decimal places.

Week	Sales	4 Period Moving Average	5 period Moving Average
1	16
2	22
3	17
4	23
5	15
6	17
7	21
8	19
9	20
10	18
11	15
12	23

(b)

Compute the MSE for the four-week and five-week moving average forecasts.

If required, round your final answers to three decimal places.

MSE for four-week moving average =  

MSE for five-week moving average =   

(c)

What appears to be the best number of weeks of past data (three, four, or five) to use in the moving average computation? Consider that the MSE for the three-week moving average is 12.667.

- Select your answer -ThreeFourFiveItem 18

Answer 1

MSE for 4 week movig avereage = 46.88/8=5.86

4 week and 5 week mse is better because mse is less than the mse in 3 week