b) The MAD for a 3-year moving average based forecast is ____ sales ( round your

Question

b) The MAD for a 3-year moving average based forecast is ____ sales (round your response to one decimal place).

c) The MSE for a 3-year moving average based forecast is ____ sales (round your response to the nearest whole number)

Sales of Volkswagen's popular Beetle have grown steadily at auto dealerships in Nevada during the past 5 years (see table below) Sales 455 502 518 566 584 Year 4 5 a) Forecasted sales for year 6 using a 3-year moving average issales (round your response to one decimal place).

Explanation / Answer

Year Sales 3 year moving average Error Error^2 1 455 2 502 3 518 4 566 491.67 74.33 5524.949 5 584 528.67 55.33 3061.409 3 year moving average forecast = Average of last 3 year sales = (518+566+584)/3 = 556 The MAD for a 3-year moving average based forecast = (74.33+55.33)/2 =64.83 =65 The MSE for a 3-year moving average based forecast =(5524.95+3061.41)/2 =4293.18 =4293

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