Calculate measurement error using mse and mad

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Reference no: EM131148825

Calculate and answer parts a through d and include calculations and spreadsheets in your post. Explain why moving average method was used instead of anothe forecasting method. What might be another forecasting method that could prove useful.

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

Years            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 to forecast the number of mergers for 2012

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

C) Calculate a 5 year weighted moving average to forecast the number of mergers 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: EM131148825

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