Reference no: EM132898565

1. Business at Terry's Tie shop can be viewed as falling into three distinctseasons:1.Christmas (November to December)2.Father's Day (late May to mid June)3.All other times Average weekly sales during each of these three seasons for the past four years has been as follows

Season Year 1 Year2 Year3 Year4

1 1856 1995 2241 2280
2 2012 2168 2306 2408
3 985 1072 1105 1120

1) Solve the forecast equation that minimizes the sum of squared error.

2)  Determine a forecast for the average weekly sales for season 1 of fifth year

2.Consider the following time series data

Week 1 2 3 4 5 6 7

Value 24 12 20 12 19 23 15

Use naive method and calculate following measures

1)Mean Absolute Error

2)Mean Squared Error

3)Mean Absolute Percentage Error

4)What is the forecast for week ?

3.Consider the following time series data

Week 1 2 3 4 5 6
Value 18 13 16 11 17 14

1)Compute three week moving average forecast. Then Compute mean absolute error and mean square error for this method

2Compute forecast using exponential smoothing (α= 0.02). Then Compute mean absolute error and mean square error for this method.