See attached file.
What is the moving average forecast prediction for a 3 day span for American Express stock?
Repeat with a span of 10 days
Which of these two spans appears to be more appropriate? Explain your choice.© BrainMass Inc. brainmass.com October 17, 2018, 12:30 am ad1c9bdddf
The solution determines the moving average forecast prediction for American express stock.
Moving Average Forecast, Weighted Moving Average Forecast, Cumulative Error and Comparison
1. The Fastgro Fertilizer Company distributes fertilizer to various lawn and garden shops. The company must base its quarterly production schedule on a forecast of how many tons of fertilizer will be demanded from it. The company has gathered the following data for the past 3 years from its sales records:
Year Quarter Demand for Fertilizer (tons)
1 1 105
2 5 140
3 9 150
A. Compute a three quarter moving average forecast for quarter 4 through 13 and compute the forecast error for each quarter.
B. Compute a five quarter moving average forecast for quarters 6 through 13 and compute the forecast error for each quarter.
C. Compute a weighted three quarter moving average forecast, using weights (weighing factors) of .50, .33, and .17 for the most recent, next recent, and most distant data, respectively, and compute the forecast error for each quarter.
D. Compare the forecasts developed in (a), (b), and (c), using cumulative error. Which forecast appears to be most accurate? Do any of them exhibit any bias?View Full Posting Details