- 15 Marks
QT – May 2019 – L1 – Q5b – Forecasting
Compute 5-period moving averages, weighted moving averages, and comment on their suitability for forecasting
Question
The number of enquiries being made to a mail order business during a Monday to Friday working week is given as:
| Week | Monday | Tuesday | Wednesday | Thursday | Friday |
|---|---|---|---|---|---|
| 1 | 34 | 36 | 24 | 25 | 41 |
| 2 | 33 | 34 | 24 | 23 | 43 |
| 3 | 35 | 37 | 25 | 25 | 47 |
Required: i) Plot the data on a graph.
ii) Compute a 5-period moving average for the data.
iii) Compute a ‘weighted’ moving average for the data if the smoothing constant is α=0.5.
iv) Superimpose the graphs of (ii) and (iii) on your graph in (i) above.
v) Comment on the suitability of the two smoothing methods above. (16 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Data Plotting, Forecasting, Moving Averages, Time series, Weighted Moving Averages
- Level: Level 1
- Topic: Forecasting
- Series: MAY 2019
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