- The following data represents the state's ranking (1=above average, 2 = average, 3= below average) for six local school districts (i.e., the population).
District Rating
A 1
B 3
C 2
D 2
E 1
F 2
E 2943
- Based on the sales data from problem 1, find the following.
a) 2-period moving average and MSE
b) 4-period moving average and MSE
c) Forecast for periods t =13 and t =14. Which forecast is preferred, based on MSE?
d) Plot the sales data over time on the same plot as the 2 and 4-period moving averages with their forecasts. Comment on the plotted results.
- Based on the sales data from problem 1, find the following.
a) Linear trend equation
b) Forecast for periods t =13 and t =14.
c) Plot the sales data over time on the same plot as the linear trend. Comment on the plotted results.
- Monthly expenses for an advertising agency were obtained for the previous year. The sample of 12 expenses showed a mean of $196,000, with a standard deviation of $45,000. The office manager is budgeting for monthly expenses, and would like to know if it is reasonable to expect expenses to be below $250,000. Construct a 95% confidence interval to justify if $250,000 is reasonable.
Sample Solution