Valentine's Day Is the Best Day of the Year for Selling

question 66

Essay

Valentine's Day is the best day of the year for selling roses at River Road Florist. Dozens of roses sold on Valentine's Day over six years are as follows:
$\begin{array}{|c|c|}\hline \text { Year } & \text { Dozen } \\\hline 2005 & 104 \\\hline 2006 & 109 \\\hline 2007 & 101 \\\hline 2008 & 114 \\\hline 2009 & 104 \\\hline 2010 & 100 \\\hline\end{array}$
a.What is the forecast for Valentine's Day in 2011 using a three-period moving average?
b.What is the forecast for Valentine's Day in 2011 using a five-period moving average?
c.What is the mean absolute deviation (MAD) for years 2008-2010 using a three-period moving average?
d.What is the tracking signal for years 2008-2010 using a three-period moving average?

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to changes in economic conditions.

Average Cost

The total cost of production divided by the number of units produced, providing a measure of the cost per unit of output.

Total Costs

The complete sum of all expenses, direct and indirect, incurred in the production of goods or services.

Average-Fixed-Cost Curve

A graph that shows the average fixed costs of production at different levels of output.