The figures below indicate the number of mergers that took

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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             2006      83

2001   46             2007     123

2002   62             2008      97

2003   45             2009     186

2004   64            2010      225

2005   61            2011      240

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

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

b. 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.

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

Reference no: EM13378410

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