Please answer and these two questions b) The MAD for a 3-year moving average bas
ID: 388580 • Letter: P
Question
Please answer and these two questions
b) The MAD for a 3-year moving average based forecast is sales (round your response to one decimalplace).
c) The MSE for a 3-year moving average based forecast is nothing sales (round your response to the nearest whole number).
OMG 322-32 Introduction to Operations Management Homework: Chapter 4 HW Assignment Save Score: 0 of 1 pt 50110(5 complete) HW Score: 26%, 2 6 of 10 Problem 4.15 Question Help * Sales of Volkswagen's popular Beetle have grown steadily at auto dealerships in Nevada during the past 5 years (see table below). Year Sales 455 502 518 563 580 a) Forecasted sales for year 6 using a 3-year moving average is decimal place) sales (round your response to one Enter your answer in the answer box and then click Check Answer 2 parts 6:52 PM 9/20/2018Explanation / Answer
Solution:
(a) 3-year moving average:
Forecasted sales for year 6 = Sales values of (Year 5 + Year 4 + Year 3) / 3
Forecasted sales for year 6 = (580 + 563 + 518) / 3
Forecasted sales for year 6 = 553.7 Sales
(b) Mean Absolute Deviation (MAD):
MAD is calculated as,
MAD = Sum of absolute values of (Actual - Forecast) / Number of periods
Forecasted sales for year 4 = (518 + 502 + 455) / 3 = 491.7
Forecasted sales for year 5 = (563 + 518 + 502) / 3 = 527.7
MAD = [(563 - 491.7) + (580 - 527.7)] / 2
MAD = (71.3 + 52.3) / 2
MAD = 61.8 Sales
(c) Mean Squared Error (MSE):
MSE is calculated as,
MSE = Sum of [(Actual - Forecast)^2] / Number of periods
MSE = [(563 - 491.7)^2 + (580 - 527.7)^2] / 2
MSE = (5,083.69 + 2,735.29) / 2
MSE = 3,909 Sales