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Question
I need a 100% original post on Forecasting Methods
Read Problem 6 in Chapter 6 of your textbook. Calculate and answer parts a through d. Include all calculations and spreadsheets in your post. Explain why the moving average method was used instead of another forecasting method. What might be another forecasting method that could prove to be just as useful? Your initial post should be 200-250 words.
The figures below indicate the number of mergers that took place in the savings and loan industry over a 12-year period.
Year
Mergers
Year
2000
46
2006
2001
46
2007
2002
62
2008
2003
45
2009
2004
64
2010
2005
61
2011
Calculate a 5-year moving average to forecast the number of mergers for 2012.
Use the moving average technique to determine the forecast for 2005 to 2011. Calculate measurement error using MSE and MAD.
Calculate a 5-year weighted moving average to forecast the number of mergers for 2012. Use weights of 0.10, 0.15, 0.20, 0.25, and 0.30, with the most recent year weighted being the largest.
Use regression analysis to forecast the number of mergers in 2012.
Answer
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