Consider the following monthly sales data for a company: Using the method of mov
ID: 3183653 • Letter: C
Question
Consider the following monthly sales data for a company:
Using the method of moving averages over 2 months, which month in 2016 matches the predicted value the worst?
May
June
July
January
Jan-2015 147772 Feb-2015 144335 Mar-2015 163943 Apr-2015 169634 May-2015 175371 Jun-2015 174825 Jul-2015 176995 Aug-2015 176208 Sep-2015 170202 Oct-2015 175510 Nov-2015 180364 Dec-2015 217629 Jan-2016 154400 Feb-2016 155596 Mar-2016 183782 Apr-2016 181209 May-2016 186359 Jun-2016 189244 Jul-2016 184978 Aug-2016 192925Explanation / Answer
Month Actual Value : Predicted Value Ratio
January 154400 198996 1.28
May 186359 182495.5 0.98
June 189244 183784 0.97
July 184978 187801 1.01
The predicted values are calculated by taking an average of the previous two months actual values.
As we can see,the ratio for January is the highest and most divergent from 1 than the others.
Hence,the answer is January