Compute mse for two- and three-period moving average models

Question

Problem

A restaurant wants to forecast its weekly sales. Historical data (in dollars) for fifteen weeks are shown below. Use Excel and the Moving Average template to answer the following questions.

Time Period      Observation
1                           1,621
2                           1,578
3                          1,338
4                          1,246
5                          1,178
6                           1,355
7                           1,691
8                          1,383
9                           1,378
10                         1,599
11                         1,350
12                          1,532
13                          1,646
14                         1,567
15                          1,368

• What is the forecast for week 16, using a two-period moving average?

• What is the forecast for week 16, using a three-period moving average?

• Compute MSE for the two- and three-period moving average models to determine the best model. Do not round intermediate calculations.