BUSINESS ANALYSIS EXAM 2 QUESTIONS AND ANSWERS

BUSINESS ANALYSIS EXAM 2 QUESTIONS AND ANSWERS
Using the data below, what is the 2 period moving average forecast for the 3rd week? - CORRECT
ANSWER✅✅(period 1 + period 2)/2



EXAMPLE:

week - tsv

1-9

2 - 25

3 - 24

4 - 11

(9 + 25)/2 = 17



Using the data below and the SES forecast α=0.3 , what is the error for the 3rd week? - CORRECT
ANSWER✅✅(a)(previous period) + (1-a)(previous forecast



EXAMPLE:

week - tsv

1 - 15

2-5

3 - 24

4 - 15

(.3)(5) + (.7)(15) = 12



Using the data below, what is the value of MAD? - CORRECT ANSWER✅✅sum of absolute deviations/ #
of observations



sum of absolute deviations= tsv-forecast



EXAMPLE:

, week - tsv - forecast

1-6-5

2-5-4

3-4-4

4-7-8



abs deviation (subtract across tsv and forecast)

1

1

0

1

=3/4 = .75



Using the data below, what is the value of RMSE? - CORRECT ANSWER✅✅sqrt(sum of error^2/ # of
observations)



EXAMPLE:

week - tsv - forecast

1-3-5

2-5-4

3-2-7

4-8-6



error (subract across tsv and forecast)

2

1

5

2