Question

Marianne​ Kramer, the owner of Handy Man​ Rentals, rents carpet cleaners to contractors and​ walk-in customers. She is interested in arriving at a forecast of rentals so that she can order the correct quantities of supplies that go with the cleaners. Data for the last 10 weeks are shown here.

                                                                                                                                                          

Week   1   2   3   4   5   6   7   8   9   10
Rentals   21   14   29   26   29   11   26   26   12   19

a. Prepare a forecast for weeks 6 through 10 by using a 4-week moving average

. ​(Enter your responses rounded to two decimal​ places.)

Week	Forecast
6

7

8

9

10

What is the forecast for week​ 11?

rentals. ​(Enter your response rounded to two decimal​ places.)

b. The mean absolute deviation as of the end of week 10 is

rentals. ​(Enter your response rounded to two decimal​ places.)

Answer 1

We prepare a 4-week moving forecast as shown below. We also find MAD as shown:

The forecast for week​ 11 = 20.75 rentals

The mean absolute deviation as of the end of week 10 is 6 rentals

The above solution in the form of formulas is shown below for better understanding and reference:

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