A Coffee Chain Sells Temperature-Controlled Smart Mugs at $150 Each

question 131

Essay

A coffee chain sells temperature-controlled smart mugs at $150 each. The monthly sales of mugs for the last twelve months were:
(a) Compute a 3-month moving average demand forecast for each month from June through December. (Round all forecasts to the nearest whole unit.)
(b) Compute a 5-month moving average demand forecast for each month from June through December. (Round all forecasts to the nearest whole unit.)
(c) Calculate the MSE covering June through December for both methods.
(d) Which method is more likely to have a better forecast performance?

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Definitions:

Dissociative Amnesia

A mental health disorder characterized by memory loss that is more significant than typical forgetfulness and not due to other medical conditions.

Dissociative Identity Disorder

A psychological disorder characterized by the presence of two or more distinct personality states or identities in an individual, often resulting from severe trauma.

Dissociative Fugue

A rare psychological state in which a person temporarily loses their sense of personal identity and impulsively wanders or travels away from their home, often creating a new identity.

Evolved Module

A brain structure or function that developed over time through natural selection to solve specific problems related to survival and reproduction.