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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?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91571032

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