Answered: Suppose these data show the number of…

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter7: Distance And Approximation

Section7.3: Least Squares Approximation

Problem 31EQ

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Question

Suppose these data show the number of gallons of gasoline sold by a gasoline distributor in Bennington, Vermont, over the past 12 weeks.

Week	Sales (1,000s of gallons)
1	18
2	21
3	19
4	24
5	19
6	17
7	20
8	19
9	23
10	20
11	15
12	22

(a) is in the images

(b)

Compute the MSE for the four-week moving average forecasts. (Round your answer to two decimal places.)

Compute the MSE for the five-week moving average forecasts. (Round your answer to two decimal places.)

(c)

What appears to be the best number of weeks of past data (three, four, or five) to use in the moving average computation? MSE for the three-week moving average is 11.02.

Options:

-Three weeks appears to be best, because the three-week moving average provides the smallest MSE.

-Three weeks appears to be best, because the three-week moving average provides the largest MSE.

-Four weeks appears to be best, because the four-week moving average provides the smallest MSE.

-Five weeks appears to be best, because the five-week moving average provides the smallest MSE.

-None appear better than the others, because they all provide the same MSE.

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