Question

The data below shows the number of goods manufactured in one year. ($ billion). Calculate forecasts for years 6 through 13 using a 5-year moving average. Then, calculate forecasts for years 6 through 13 using a 5-year weighted moving average. Weight the most recent year by 6, the previous year by 4, the year before that by 2, and the other years by 1. Be sure to show the entire table in the work area of the template. Answer the following questions: a) What is the forecast for year 13 based on the 5-year moving average? b) What is the forecast for year 13 based on the 5-year weighted moving average? c) What is the MAD for the moving average forecast? d) What is the MAD for the weighted moving average forecast? e) Which forecasting model that you calculated is better? Why? Year Factory orders 1 2,512.70 2 2,739.20 3 2,874.90 4 2,934.10 5 2,865.70 6 2,978.50 7 3,092.40 8 3,052.60 9 3,145.20 10 3,114.10 11 3,257.40 12 3,654.00 13

Answer 1