Problem
Forecasts and actual sales of digital music players at Just Say Music are as follows:
|
Month
|
Forecast
|
Actual Sales
|
|
March
|
180
|
170
|
|
April
|
216
|
229
|
|
May
|
207
|
190
|
|
June
|
260
|
241
|
|
July
|
264
|
249
|
|
August
|
260
|
220
|
|
September
|
260
|
240
|
|
October
|
254
|
160
|
i. What is the forecast for November, using a two-period moving average?
ii. What is the forecast for November, using a three-period moving average?
iii. Compute MSE for the two- and three-period moving average models and compare your results. Do not round intermediate calculations.