Solve the following problem:
Q1: Forecasting is not to clear to me, how do I get started? Given the following data on hotel check-ins for a 6-month period:
Month Number of rooms
July 70
August 105
September 90
October 120
November 110
December 115
a. What is the 3-month moving average for January?
b. What is the 5-month moving average for January?
9. Recent actual and forecasted data for product XYZ is given in the following table.
Month Actual Demand 3-month Forecasted Demand
May 35 25
June 31 30
July 48 33
August 41 38
Determine the MSE, MAD, cumulative error and average error.
Q2: The following table summarizes data between money spent on gambling and winnings for Robert.
Money Spent Money Won
x y
12 62
10 54
16 86
18 100
15 80
10 57
5 26
12 60
22 105
25 140
Develop a linear regression equation for these data and forecast how much money Robert will win if he spends $30.