The owner of an online video rental service has recorded the following rentals each week:
|
Week:
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
|
Rentals:
|
1202
|
1503
|
1444
|
1254
|
1609
|
1499
|
1689
|
1555
|
a. Use a three-week moving average to forecast sales for each of the weeks 4 through 9.
b. Use a four-week moving average to forecast sales for each of the weeks 5 through 9.
c. Compare the forecasts created by these two methods using mean absolute deviation. Which forecasting method would you recommend?