Please Help Lenovo uses the ZX-81 chip in some of its laptop computers. The pric
ID: 389794 • Letter: P
Question
Please Help
Lenovo uses the ZX-81 chip in some of its laptop computers. The prices for the chip during the last 12 months were as follows: Month January February March Price Per Chip S1.90 $1.61 $1.60 S1.85 $1.90 $1.89 Month August September October November December Price Per Chip S2.00 $1.70 $1.65 $1.60 $1.60 $1.75 May June This exercise contains only parts a, b, and c a) Using a 2-month moving average, the forecast for periods 11 and 12 is (round your responses to two decimal places): Month Mar Apr May Jun Jul Aug Sep ct Nov Dec Forecast $1.76 1.61 1.73 1.88 1.90 1.95 185 1.68 1.63 1.60 b) Using a 3-month moving average, the forecast for periods 11 and 12 is (round your responses to two decimal places): Month Apr May Jun Jul Aug Sep Oct Nov Dec Forecast $1.70 1.69 78 1.88.93 1.86 78 1.65 1.62 c) The mean absolute deviation based on a 2-month moving average of March through December is $round your response to three decimal places)Explanation / Answer
a) A two period moving average method averages the actual value for the previous two periods to generate the forecast for the next period. This can be calculated as the sum of the actual value for the previous two periods/2
So using the above formula the forecast for period 11 and 12 are
b) A three period moving average method averages the actual value for the previous three periods to generate the forecast for the next period. This can be calculated as the sum of the actual value for the previous three periods / 3
So using the above formula the forecast for peeiod 11 and 12 are
C)Mean absolute deviation = Sum of the absolute deviation for all the periods / number of periods
Where absolute deviation = absolute value of deviation
Deviation = actual value - forecasted value
So using the above formula the deviation and absolute deviation for March through December are
Mean absolute deviation = (0.16+0.24+0.17+0.01+0.1+0.25+0.2+0.08+0.03+0.15)/10 = 1.39/10 = 0.139