Reference no: EM132784198

You are doing an internship with Macy's and are tasked with forecasting sales so that you can make inventory orders. You have weekly sales data for men's dress shirts in your store from each of the past six weeks. You decide to try both a 3-period moving average and exponential smoothing with λ = 0.6 to see which model is more accurate and then use that one to make forecasts.

The sales data is shown below.

Week                # of Shirts Sold

week 1                337 shirts sold

week 2               448 shirts sold

week 3                425 shirts sold

week 4                  383 shirts sold

week 5                   399 shirts sold

week 6                        402 shirts sold

Problem 1: What is the calculated MSE using the 3-period moving average? Round intermediate calculations to 4 decimals and your final answer to the nearest whole number. Hint: Excel is your friend and can serve as calculator.