Johns Crab Shack sells crabs to restaurants in Maine the dat

John\'s Crab Shack sells crabs to restaurants in Maine, the data below is sales over a three year period.

The Owner wants to forecast the number of sales for January 2013. He wants to use a 5 period moving average smoothing model to arrive at the forecast.

a) Provide the desired forecast for Period 37 based on the Moving Average Soothing Model

B) Calculate the MAD value for this linear trend model

Year Month Month Number Sales Received
2010 Jan 1 23,500
Feb 2 21,700
Mar 3 18,750
Apr 4 22,000
May 5 23,000
Jun 6 26,200
Jul 7 27,300
Aug 8 29,300
Sep 9 31,200
Oct 10 34,200
Nov 11 39,500
Dec 12 43,400
2011 Jan 13 23,500
Feb 14 23,400
Mar 15 21,400
Apr 16 24,200
May 17 26,900
Jun 18 29,700
Jul 19 31,100
Aug 20 32,400
Sep 21 34,500
Oct 22 35,700
Nov 23 42,000
Dec 24 42,600
2012 Jan 25 31,000
Feb 26 30,400
Mar 27 29,800
Apr 28 32,500
May 29 34,500
Jun 30 33,800
Jul 31 34,200
Aug 32 36,700
Sep 33 39,700
Oct 34 42,400
Nov 35 43,600
Dec 36 47,400

Solution

For a 5 period moving average previous 5 months avrage is calculated

ie.average for Aug, Sep, oct, nov and dec is forecast for Jan 2013

= 41960

a) Moving average soothing model = average of all = 31763

c) MAD value for this linear trend is Mean absolute deviation.

John\'s Crab Shack sells crabs to restaurants in Maine, the data below is sales over a three year period. The Owner wants to forecast the number of sales for Ja
John\'s Crab Shack sells crabs to restaurants in Maine, the data below is sales over a three year period. The Owner wants to forecast the number of sales for Ja

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