Question

Refer to the gasoline sales time series data in the given table.

Week	Sales (1,000s of gallons)
1	18
2	22
3	15
4	24
5	18
6	15
7	21
8	19
9	21
10	20
11	16
12	22

Compute four-week and five-week moving averages for the time series.
	If required, round your answers to two decimal places.
	Week Sales 4 Period Moving Average 5 period Moving Average 1 18 2 22 3 15 4 24 5 18 6 15 7 21 8 19 9 21 10 20 11 16 12 22

(b) Compute the MSE for the four-week and five-week moving average forecasts. If required, round your final answers to three decimal places. MSE for four-week moving average = MSE for five-week moving average = (c) What appears to be the best number of weeks of past data (three, four, or five) to use in the moving average computation? Consider that the MSE for the three-week moving average is 10.086. - Select your answer -ThreeFourFiveItem 18

Answer 1

a) solution of this part is in the adjoining pictures

b)

MSE for four-week moving average is 8.905

MSE for five-week moving average is 4.232

c)

since the five week moving average has smaller MSE = 4.232

hence it is the best number of past data to use in the moving average computation.