Hospitality Hotels forecasts monthly labor needs. (a) Given the following monthly labor figures, make a forecast...

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Finance

Hospitality Hotels forecasts monthly labor needs.

(a) Given the following monthly labor figures, make a forecast forJune using a three-period moving average and a five-period movingaverage. (Round answers to 2 decimal places, e.g.15.25.)
Month Actual Values
January 35
February 45
March 44
April 44
May 46
3 - Period Moving Average = 44.67
5 - Period Moving Average = 42.8
(b) What would be the forecast for June using the naïve method?(Round answers to 2 decimal places, e.g.15.25.)
Forecast for June = 46
(c) If the actual labor figure for June turns out to be 45, whatwould be the forecast for July using each of these models?(Round answers to 2 decimal places, e.g.15.25.)
3 - Period Moving Average = 45
5 - Period Moving Average = 44.8
Naive method = 45
(d) Compare the accuracy of these models using the mean absolutedeviation (MAD). (Round answers to 2 decimalplaces, e.g. 15.25.)
MAD (3-period) = ?
MAD (5-period) = ?
MAD (naive) = ?
(e) Compare the accuracy of these models using the mean squarederror (MSE). (Round answers to 2 decimalplaces, e.g. 15.25.)
MSE (3-period) = ?
MSE (5-period) = ?
MSE (naive) = ?

Answer & Explanation Solved by verified expert

4.3 Ratings (801 Votes)

I am calculating every part of the question to get clarity Ans a 3 period of moving averages of June will be mean of a march April and May ie 4444463 4467 The 5period moving average will the average from January to May for June forecast ie 35454444465428 Ans b The forecast of June See Answer

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Hospitality Hotels forecasts monthly labor needs.(a) Given the following monthly labor figures, make a forecast forJune using a three-period moving average and a five-period movingaverage. (Round answers to 2 decimal places, e.g.15.25.)MonthActual ValuesJanuary35February45March44April44May463 - Period Moving Average = 44.675 - Period Moving Average = 42.8(b) What would be the forecast for June using the naïve method?(Round answers to 2 decimal places, e.g.15.25.)Forecast for June = 46(c) If the actual labor figure for June turns out to be 45, whatwould be the forecast for July using each of these models?(Round answers to 2 decimal places, e.g.15.25.)3 - Period Moving Average = 455 - Period Moving Average = 44.8Naive method = 45(d) Compare the accuracy of these models using the mean absolutedeviation (MAD). (Round answers to 2 decimalplaces, e.g. 15.25.)MAD (3-period) = ?MAD (5-period) = ?MAD (naive) = ?(e) Compare the accuracy of these models using the mean squarederror (MSE). (Round answers to 2 decimalplaces, e.g. 15.25.)MSE (3-period) = ?MSE (5-period) = ?MSE (naive) = ?