# Compute the MSE for the four-week and five-week moving average forecasts.

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September 8, 2020
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September 8, 2020

Refer to the gasoline sales time series data in the given
table.

Week
Sales (1000s of gallons)

1
17

2
21

3
19

4
23

5
17

6
16

7
20

8
19

9
21

10
19

11
15

12
23

Compute four-week and five-week moving averages for the time

Week

Sales
4-Week
Moving Average
5-Week
Moving Average

1
17

2
21

3
19

4
23

5
17

6
16

7
20

8
19

9
21

10
19

11
15

12
23

Compute the MSE for the four-week and five-week moving average
to two decimal places.

MSE for four-week moving average =

MSE for five-week moving average =
What appears to be the best number of weeks of past data (three,
four, or five) to use in the moving average computation? Recall
that MSE for the three-week moving average is 11.19.

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