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Compute a three-month moving average

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Reference no: EM13839148

The Harley Davidson motorcycle dealer in the Minneapolis-St. Paul wants to be able to forecast accurately the demand for the Roadhog Super motorcycle during the next month. Form sales records, the dealers have accumulated the data in the following table for the past year.

Month

Motorcycle Sales

January

9

February

7

March

10

April

8

May

7

June

12

July

10

August

11

September

12

October

10

November

14

December

16

a. Compute a three-month moving average forecast of demand for April through January (of the next year)

b. Compute a five-month moving average forecast for June through January (of the next year).

c. Compare the two forecasts computed in parts (a) and (b) using MAD. Which one should the dealer use for January of the next year?

Reference no: EM13839148

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