Aonthly revenue a) Forecast the revenue for January Year 5 using the moving averages method....
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Aonthly revenue a) Forecast the revenue for January Year 5 using the moving averages method. Consider three different numbers of periods for the moving average calculation (2, 4, and 6 months). (10 marks) 1. Does the January forecast for Year 5 change if you change the number of periods to calculate the moving average? Enumerate the three different forecasts (using the three periods - 2, 4, and 6 months) for January Year 5. (3 marks) 2. Plot the actual and predicted revenue for all three moving average calculations (You will have four plots in total on one chart - the actual data and the three forecasts). (3 marks) 3. Which model is the best (the one based on a 3, 6, or 9-month moving average)? Why? Show your calculations. (4 marks) b) Using multiple regression analysis, forecast revenues for each month of Year 5 (8 marks) c) Which model is better - the one based on the moving average or the regression analysis? Why? Show your calculations. Note: compare the best moving average model in question 3 above with the regression model in question b. (2 marks)
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