Solve the following:
Q: The U.S. Census Bureau publishes data on factory orders for all manufacturing, durable goods, and nondurable goods industries. Shown here are factory orders in the United States over a 13-year period ($ billion).
(a) Use these data to develop forecasts for the years 6 through 13 using a 5-year moving average.
(b) Use these data to develop forecasts for the years 6 through 13 using a 5-year weighted moving average. Weight the most recent year by 6, the previous year by 4, the year before that by 2, and the other years by 1
(c) Compute the errors of the forecasts in parts (a) and (b) and observe the differences in the errors of the forecasts.Year Factory Orders (S billion)
2,512.7
2 2,739.2
3 2,874.9
4 2,934.1
5 2,865.7
6 2,978.5
7 3,092.4
8 3,356.8
9 3,607.6
10 3,749.3
11 3,952.0
12 3,949.0
13 4,137.0