Purchase Solution

Forecasting problem: comparing methods

Not what you're looking for?

Ask Custom Question

The manager of carpet city outlet needs to make an accurate forecast of demand for soft shag carpet (its biggest seller). If the manager does not order enough carpet from the carpet mill, customers will buy their carpet from one of carpet city's many competitors. The manager has collected the following demand data for the past 8 months.

(see attached file for data)

i. compute a 3 month moving average forecast for months 4-9
ii. compute a weighted 3 month moving average forecast for months 4-9 assigning weights of .55, .33, and .12 to the months in sequence, starting with the most recent month.
iii. compare the two forecasts by using MAD. Which forecast appears to be more accurate?

Attachments
Purchase this Solution

Solution Summary

This posting contains solution to following forecasting problem comparing accuarcy of forecasting method based on MAD.

Purchase this Solution


Free BrainMass Quizzes
Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.