Please answer the following: United Dairies, Inc., supplies milk to several independent grocers throughout Dade County, Florida....

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Please answer the following:
United Dairies, Inc., supplies milk to several independentgrocers throughout Dade County, Florida. Managers at United Dairieswant to develop a forecast of the number of half gallons of milksold per week. Sales data for the past 12 weeks are:
Week
Sales
1
2,750
2
3,100
3
3,250
4
2,800
5
2,900
6
3,050
7
3,300
8
3,100
9
2,950
10
3,000
11
3,200
12
3,150
1. Compute four-week and five-weekmoving averages for the time series.
Compute the MSE for the four-week and five-week moving averageforecasts.
What appears to be the best number of weeks of past data(three, four, or five) to use in the moving average computation?The MSE for three weeks is 23527.78
Show the exponential smoothing forecasts using Î± = 0.1.
Applying the MSE measure of forecast accuracy, would you prefera smoothing constant of Î±=0.1 or Î±= 0.2 for the United Dairiessales time series?
Are the results the same if you apply MAE as the measure ofaccuracy?
What are the results if MAPE is used?
3. Â Â Use exponentialsmoothing with a Î± = 0.4 to develop a forecast of demand for week13. What is the resulting MSE?
Â Â Â Â Â Â Â Â Â Â Â

Answer & Explanation Solved by verified expert

3.8 Ratings (708 Votes)

Soln 1 Four Month Moving Average Week Sales FourMonth Moving Average Deviation Error Error2 1 2750 2 3100 3 3250 4 2800 5 2900 2975 75 75 562500 6 3050 3013 38 375 140625 7 3300 3000 300 300 9000000 8 3100 3013 88 875 765625 9 2950 3088 138 1375 1890625 10 3000 3100 100 100 1000000 11 3200 3088 113 1125 1265625 12 3150 3063 88 875 765625 Mean 11719 1923828 Four Month Moving Average Sum of Previous 4 See Answer

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Week	Sales
1	2,750
2	3,100
3	3,250
4	2,800
5	2,900
6	3,050
7	3,300
8	3,100
9	2,950
10	3,000
11	3,200
12	3,150