A restaurant wants to forecast its weekly sales.  Historical data (in dollars) for 15 weeks are shown in this Excel file  (also shown in Problem 6 on page 243 in the textbook). Answer the following questions related to this information: What is the MSE for the two- and three-period moving average models?  Compare the results. Find the best number of periods for the moving average model based on MSE.

Question
  • A restaurant wants to forecast its weekly sales.  Historical data (in dollars) for 15 weeks are shown in this Excel file  (also shown in Problem 6 on page 243 in the textbook).
  • Answer the following questions related to this information:
    1. What is the MSE for the two- and three-period moving average models?  Compare the results.
    2. Find the best number of periods for the moving average model based on MSE.
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