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# Five-period and Ten-period Moving Average Forecasts

Can anyone solve the problem below, and plz see the attached xls:

Forecasting for 5 Thermostat Demands
(a) Develop a five-period moving average forecast to predict sales for periods 6 through
(b) Develop a ten-period moving average forecast to predict sales for periods 11 through
66 and calculate the MAD. Which forecast is more accurate for period 66? Are the forecasting methods used appropriate for the data? Why or why not? Which forecast is smoother? When a trend or pattern is emerging, would you use a small or large n? Why?

#### Solution Preview

For the 5-period and 10-period moving average forecasts, please see the attached spreadsheet file.

Which forecast is more accurate for period 66?
Having smallest computed mean absolute deviation (MAD) of 44, the 10-point ...

#### Solution Summary

The solution computes for a five-period and ten-year moving average and a ten-year forecasts. The mean absolute deviation was computed to identify the best forecasting method. The detailed computation was done in the attached spreadsheet file.

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