Question

# (a) Use moving average with three periods to compute the monthly revenue for months 1through 12 of

2013.

(b) calculate MAD for the model in a

(c) Use a weighted moving average with three periods to compute the monthly revenue formonths 1 through 12 of 2013. Use 3, 2, and 1 for the weights of the most recent, second most recent, and third most recent periods, respectively.

(d) calculate MAD for the model in c

(e) Use a weighted moving average with three periods to compute the monthly revenue formonths 1 through 12 of 2013. . Use 2, 2, and 1 for the weights of the most recent, second most recent, and third most recent periods, respectively.

(f) calculate MAD for the model in e

(g) Use the exponential smoothing method to compute the monthly revenue for months 1through 12 of 2013. Remember for smoothing that the equation is F_{t+1}=F_{t}+α*(Y_{t}-F_{t}). The key was on the right side of the equation, first and last term in the calculation are the same. For this problem, use alpha=.3. For the first month, presume the forecast was 450.

(h) calculate the MAD for the model in g

(i) compare b, d, and f and h, which model is the best?

(j) calculate the forecast of revenue for January 2014 by using the best model decided in g.

### Recently Asked Questions

- If x is a binomial random variable where n = 100 and p = 0.30, find the probability that x is more than 25 using the normal approximation to the binomial.

- Please use excel and write down the steps in the excel functions: The data set is in the google spreadsheets here:

- The number of hours 10 students spent studying for a test and their scores on that test are shown in the table. Is there enough evidence to conclude that there