Calculate measurement error using MSE and MAD

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The figures below indicate the number of mergers that took place in the savings and loan industry over a 12-year period.

Year Mergers  Year Mergers
2000 46
2001 46
2002 62
2003 45
2004 64
2005 61
2006 83
2007 123
2008 97
2009 186
2010 225
2011 240

a. Calculate a 5 year moving average for the number of mergers for 2012

b. Use the moving average technique to determine the forecast for 2005 to 2011. Calculate measurement error using MSE and MAD.

c. Calculate a 5-year weighted moving average to forecast the number of merg- ers for 2012. Use weights of 0.10, 0.15, 0.20, 0.25, and 0.30, with the most recent year weighted being the largest.

d. Use regression analysis to forecast the number of mergers in 2012.

Reference no: EM131086668

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