Sales of Volkswagen\'s popular Beetle have grown steadily at auto dealerships in

Question

Sales of Volkswagen's popular Beetle have grown steadily at auto dealerships in Nevada during the past 5 years (see table below). Year Sales 450 2 510 520 570 585 a) Forecasted sales for year 6 using a 3-year moving average is sales round your response to one decmal place b) The MAD for a 3-year moving average based forecast is sales (round your response to one decimal place) ) The MSE for a 3-year moving average based forecastis sales (round your response to the nearest whole number) Enter your answer in each of the answer boxes

Explanation / Answer

(a) Forecasted sales for year6 using 3 -year movingaverage is = ( 520 + 570 + 585)/3 = 558.3

(b) For MAD calculation the table is given below

For only 2 values forecast and real sale value is available

So MAD = 1/2 [(570 - 493.33) + (585 - 533.33)] = 64.2

c) MSE here is the mean square error

so MSE = 1/2 [ (570 - 493.33)2 + (585 - 533.33)2] = 4274

Year sales 3MA Forecast 1 450 #N/A 2 510 #N/A 3 520 #N/A 4 570 493.3333 5 585 533.3333 558.3333

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