Calculate a 5-year moving average to forecast the number of


Post on Forecasting Methods

Calculate and answer parts 1 through 4. 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

Mergers

2000

46

2006

83

2001

46

2007

123

2002

62

2008

97

2003

45

2009

186

2004

64

2010

225

2005

61

2011

240

1. Calculate a 5-year moving average to forecast the number of mergers for 2012.

2. Use the moving average technique to determine the forecast for 2005 to 2011. Calculate measurement error using MSE and MAD.

3. 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.

4. Use regression analysis to forecast the number of mergers in 2012.

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Business Management: Calculate a 5-year moving average to forecast the number of
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