Honest Al's Used Cars wants to predict how many cars are sold
each month. He has collected data for 12 months. He needs your help
in analyzing this data using moving averages.
|
A |
B |
C |
|
|
1 |
Number of |
4-Month |
|
|
2 |
Time Period |
Cars Sold |
Moving Avg. |
|
3 |
1 |
70 |
|
|
4 |
2 |
80 |
|
|
5 |
3 |
66 |
|
|
6 |
4 |
74 |
|
|
7 |
5 |
64 |
|
|
8 |
6 |
76 |
71.00 |
|
9 |
7 |
72 |
70.00 |
|
10 |
8 |
82 |
71.50 |
|
11 |
9 |
82 |
73.50 |
|
12 |
10 |
76 |
78.00 |
|
13 |
11 |
84 |
78.00 |
|
14 |
12 |
80 |
81.00 |
|
15 |
13 |
||
|
16 |
14 |
||
|
17 |
|||
|
18 |
MSE |
40.59 |
Refer to Exhibit 11.1.
What formula should be entered in cell C13 to compute the 4-month moving average forecast for month 11?
| a. |
=AVERAGE(B9:B12)/4 |
|
| b. |
=AVERAGE(B7+B10) |
|
| c. |
=AVERAGE(B9:B12) |
|
| d. |
=AVERAGE(A9:A12) |
Column B contains the actual values
To develop a 4- month moving average forecast , average of previous four months actual values has to be considered
For C13, row numbers would 12,11,10 and 9 and column would be B
Therefore, correct one is
| c. |
=AVERAGE(B9:B12) |
Honest Al's Used Cars wants to predict how many cars are sold each month. He has...