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Build a forecast with 4-day moving average

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Reference no: EM132379784

Question

i) Build a forecast with 4-day moving average,

ii) Model a forecast using exponential smoothing method with smoothing constant equal to 0.6,

iii) Compute Root Mean Squared Error (RMSE) and identify which of the two methods produces a forecast with better accuracy.

Day Sales

1 1735

2 1719

3 2025

4 1295

5 717

6 4317

7 2681

8 2669

9 6273

10 2049

11 2585

12 4895

13 2057

14 6955

15 2239

16 2369

17 6889

18 1697

19 309

20 715

21 5231

22 1503

23 1457

24 1785

25 2041

26 249

27 747

Reference no: EM132379784

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