Forecasting problem set

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Reference no: EM132074554

Forecasting Problem Set

F-1 Weekly income for Quiet Mental Breakdown, an online psychology firm, is provided below.  Determine, on the basis of minimizing the mean square error, whether a three-period or four-period simple moving average gives a better forecast.

Week

Income

 

 

 

 

 

 

 

1

980

 

 

 

 

 

 

 

2

1040

 

 

 

 

 

 

 

3

1120

 

 

 

 

 

 

 

4

1050

 

 

 

 

 

 

 

5

960

 

 

 

 

 

 

 

6

990

 

 

 

 

 

 

 

7

1030

 

 

 

 

 

 

 

8

1260

 

 

 

 

 

 

 

9

1240

 

 

 

 

 

 

 

10

1100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

F-2 Using the table above, what is your forecast for week 11 using a three-period weighted average with weights of .6, .3 and .1?  The weights are stated from the most current time period to the oldest time period. 

F-3Using the table above, with smoothing constants of α = .10 and then α = .30, forecast income for week 11 using exponential smoothing.

Reference no: EM132074554

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