Weekly Sales of the Weber Dicamatic Food Processor for the Past

question 20

Essay

Weekly sales of the Weber Dicamatic food processor for the past ten weeks have been: $$\begin{array} { c r | c r } \text { Week } & \text { Sales } & \text { Week } & \text { Sales } \\1 & 980 & 6 & 990 \\2 & 1040 & 7 & 1030 \\3 & 1120 & 8 & 1260 \\4 & 1050 & 9 & 1240 \\5 & 960 & 10 & 1100\end{array}$$
a. Determine, on the basis of minimizing the mean square error, whether a three-period or four-period simple moving average model gives a better forecast for this problem.
b. For each model, forecast sales for week 11.

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Definitions:

Heuristic

A heuristic is a simple, efficient rule, whether hard-coded by evolutionary processes or learned, which helps in making decisions, forming judgments, or solving problems.

Making Risky Decisions

The process of making choices under conditions of uncertainty, where the outcomes could involve significant loss or gain.

Bets

Bets involve making a wager on the outcome of an uncertain event, with the anticipation of winning a reward.

Horse Races

Competitive sporting events in which horses, ridden by jockeys, race on a course to reach a finish line, often involving betting on outcomes.