Cash bonuses paid to financial investment employees were reduced during the 2007 economic recession and have shown signs of rebounding with the recent recovery. The following data show the average cash bonus, in thousands of dollars, for New York City investment employees over an eight-year period.
|
Year
|
Average Cash Bonus ($000)
|
|
2005
|
149.8
|
|
2006
|
191.4
|
|
2007
|
177.8
|
|
2008
|
100.9
|
|
2009
|
140.6
|
|
1010
|
139.0
|
|
2011
|
111.3
|
|
2012
|
121.9
|
Part A: Using a three-period simple moving average, forecast the average cash bonus for a financial investment employee in New York City in 2013.
Part B: Calculate the MAD for the forecast in part A.
Part C: Using a two-period weighted moving average with the weights 3 and 2, forecast the average cash bonus for a financial investment employee in New York City in 2013.
Part D: Calculate the MAD for the forecast in part C.