A restaurant wants to forecast its weekly sales. Historical data (in dollars) for fifteen weeks are shown below. Use Excel and the Moving Averagetemplate to answer the following questions. Time PeriodObservation1 1,5362 1,5213 1,4034 1,2505 1,1426 1,3137 1,5018 1,3019 1,28910 1,52111 1,47212 1,50013 1,65414 1,56915 1,300 Plot the data and provide insights about the time series.The correct graph is -Select-graph Agraph Bgraph Cgraph DItem 1 .A. B. C. D. What is the forecast for week 16, using a two-period moving average? Round your answer to the nearest cent.$ What is the forecast for week 16, using a three-period moving average? Round your answer to the nearest cent.$ Compute MSE for the two- and three-period moving average models to determine the best model. Do not round intermediate calculations. Round your answers to two decimal places. 2-period MA3-period MAMSE

For the given dataset, I would use a two-period moving average and a three-period moving average…

Answered: Plot the data and provide insights…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section: Chapter Questions

Problem 40P: The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels....

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Question

A restaurant wants to forecast its weekly sales. Historical data (in dollars) for fifteen weeks are shown below. Use Excel and the Moving Averagetemplate to answer the following questions.

Time
Period	Observation
1		1,536
2		1,521
3		1,403
4		1,250
5		1,142
6		1,313
7		1,501
8		1,301
9		1,289
10		1,521
11		1,472
12		1,500
13		1,654
14		1,569
15		1,300

Plot the data and provide insights about the time series.

The correct graph is -Select-graph Agraph Bgraph Cgraph DItem 1 .

A.

B.

C.

D.
What is the forecast for week 16, using a two-period moving average? Round your answer to the nearest cent.

$
What is the forecast for week 16, using a three-period moving average? Round your answer to the nearest cent.

$
Compute MSE for the two- and three-period moving average models to determine the best model. Do not round intermediate calculations. Round your answers to two decimal places.

2-period MA 3-period MA

MSE