Weekly sales of the Weber food processor for the past 10 weeks have been as follows:
a. Determine, on the basis of minimizing the mean square error, whether a three- or four-period simple moving average model gives a better forecast for this problem.
b. For each model, forecast sales for Week 11.
a. The three-week moving average gives the better forecast (MSE = 16,337)
(compared to a MSE = 17,911 for the four-week moving average).
b. Three-week moving average forecast for Week 11 = 1200.
Four-week moving average forecast for Week 11 = 1158.
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