A coffee chain sells temperature-controlled smart mugs at $150 each. The monthly sales of mugs for the last twelve months were:
(a) Compute a 3-month moving average demand forecast for each month from June through December. (Round all forecasts to the nearest whole unit.)
(b) Compute a 5-month moving average demand forecast for each month from June through December. (Round all forecasts to the nearest whole unit.)
(c) Calculate the MSE covering June through December for both methods.
(d) Which method is more likely to have a better forecast performance?

Question

A coffee chain sells temperature-controlled smart mugs at $150 each. The monthly sales of mugs for the last twelve months were:
  (a) Compute a 3-month moving average demand forecast for each month from June through December. (Round all forecasts to the nearest whole unit.)
(b) Compute a 5-month moving average demand forecast for each month from June through December. (Round all forecasts to the nearest whole unit.)
(c) Calculate the MSE covering June through December for both methods.
(d) Which method is more likely to have a better forecast performance?

Quizplus · Accepted Answer

The Answer of A coffee chain sells temperature-controlled smart mugs at $150 each. The monthly sales of mugs for the last twelve months were:
  (a) Compute a 3-month moving average demand forecast for each month from June through December. (Round all forecasts to the nearest whole unit.)
(b) Compute a 5-month moving average demand forecast for each month from June through December. (Round all forecasts to the nearest whole unit.)
(c) Calculate the MSE covering June through December for both methods.
(d) Which method is more likely to have a better forecast performance?

A Coffee Chain Sells Temperature-Controlled Smart Mugs at $150 Each