Question 5: Consider the following annual series on the number of fishing rods sold at an outdoor store in the last 6 months.

Months Fishing rods (in 100's)

1 20

2 18

3 20

4 25

5 20

6 21

1. The 3 month moving average forecast for period 4 is

a. 18.33

b. 18.67

c. 24.33

d. 19.33

e. 25.20

2. The 3 month moving average forecast for period 7 is

a. 18.33

b. 18.67

c. 22.00

d. 24.00

e. 25.20

3. The Mean Sqaaure Eroor (MSE) for the 3 month moving average is

a. 15.63

b. 11.19

c. 18.06

d. 33.56

e. 144.44

4. using a smooithing constant of .25 the exponential smoothing value to be used as forecasts for period 6 is

a. 20.73

b. 20.79

c. 20.97

d. 22.60

e. 23.45

5. using a smooithing constant of .25 the exponential smoothing value to be used as forecasts for period 7 is

a. 20.97

b. 22.60

c. 22.94

d. 20.79

e. 24.52

6. using a smooithing constant of .25 the Mean Sqaure Error is

a. 1.14

b. 15.63

c. 1.38

d. 6.83

e. 144.44

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