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Problem 5-7 Refer to the gasoline sales time series data in the given table. Wee

ID: 3022092 • Letter: P

Question

Problem 5-7

Refer to the gasoline sales time series data in the given table.

Week

Sales (1000s of gallons)

1

18

2

22

3

15

4

24

5

18

6

15

7

21

8

19

9

21

10

20

11

16

12

22

(a)

Compute four-week and five-week moving averages for the time series.

If required, round your answers to two decimal places.


Week


Sales

4 Period
Moving Average

5 period
Moving Average

1

18

2

22

3

15

4

24

5

18

________________20.00_

6

15

_____________19.75____

_______19.40__________

7

21

______________18.00___

______18.80___________

8

19

______________19.50___

___________18.60______

9

21

_______18.25__________

_______19.40__________

10

20

_________19.00________

_____18.80____________

11

16

_________20.25________

________19.20_________

12

22

_______18.75__________

_____19.00____________

(b)

Compute the MSE for the four-week and five-week moving average forecasts.

If required, round your intermediate calculations to four decimal places and round your final answers to three decimal places.

MSE for four-week moving average = _________________

MSE for five-week moving average = _________________

Week

Actual Value

Forecasted Value

Forecasted Error

Squared Forecasted Error

1

2

3

4

5

18

20.00

-2000

4,000,000

6

15

19.75

-4750

22562500

7

21

18.00

3000

9,000,000

8

19

19.50

-500

250000

9

21

18.25

2750

7562500

10

20

19.00

1000

1,000,000

11

16

20.25

-4250

18062500

12

22

18.75

3250

10562500

MSE for four-week moving average = _________________

Week

Actual Value

Forecasted Value

Forecasted Error

Squared Forecasted Error

1

2

3

4

5

6

15

19.40

-4400

19360000

7

21

18.80

2200

4840000

8

19

18.60

400

160000

9

21

19.40

1600

2560000

10

20

18.80

1200

1440000

11

16

19.20

-3200

10240000

12

22

19.00

3000

9000000

MSE for five-week moving average = _________________

Please read the entire question, this is the second time that I have submitted this and the answers were wrong!!! This is a copy of the entire assignment please read it all, thank you!

Week

Sales (1000s of gallons)

1

18

2

22

3

15

4

24

5

18

6

15

7

21

8

19

9

21

10

20

11

16

12

22

Explanation / Answer

Answer:

Week sales 4period moving 5 period moving

average average

Week

Actual Value

Forecasted Value

Forecasted Error

Squared Forecasted Error

1

2

3

4

5

18

19.75

-1750

3062500

6

15

19.75

-4750

22562500

7

21

18.00

3000

9,000,000

8

19

19.50

-500

250000

9

21

18.25

2750

7562500

10

20

19.00

1000

1,000,000

11

16

20.25

-4250

18062500

12

22

19.00

3000

9000000

total 70500000

b.)MSE for four-week moving average = 8812500

c.)   

Week

Actual Value

Forecasted Value

Forecasted Error

Squared Forecasted Error

1

2

3

4

5

6

15

19.40

-4400

19360000

7

21

18.80

2200

4840000

8

19

18.60

400

160000

9

21

19.40

1600

2560000

10

20

18.80

1200

1440000

11

16

19.20

-3200

10240000

12

22

19.40

2600

6760000

total 45360000

MSE for five-week moving average = 45360000/7 = 6480000

1 18 2 22 3 15 4 24 5 18 19.75 6 15 19.75 19.40 7 21 18.00 18.80 8 19 19.50 18.60 9 21 18.25 19.40 10 20 19.00 18.80 11 16 20.25 19.20 12 22 19.00 19.40