Using the five most recent years and the "Forecasting Template" spreadsheet provided, complete the forecasts for the next two periods and provide updated Totals and Average Bias, median absolute...

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Using the five most recent years and the "Forecasting Template" spreadsheet provided, complete the forecasts for the next two periods and provide updated Totals and Average Bias, median absolute deviation (MAD), mean squared error (MSE), and mean absolute percentage error (MAPE) for all four charts. Provide a Summary Page in Excel with a XXXXXXXXXXword report on the analysis completed by the forecasting models. Include review of error, recommendations on the best forecasting model to use, and analysis of the business trend data for new business startup in the United States.

Answered Same DayNov 20, 2019

Answer To : Using the five most recent years and the "Forecasting Template" spreadsheet provided, complete the...

David answered on Nov 30 2019
65 Votes
Summary
    I want to analyze the number of establishments less than 1 year old for in the United States for the years 2011 – 2015. There is a rising trend observed in number of establishments less than 1 year old for in the United States for the year
s 2011 – 2015.
I make use of four methods of forecasting namely 2 year Moving average, 3 year Moving average, exponential smoothing and trend adjusted exponential smoothing. Mean absolute deviation commonly known as MAD, mean square e
or which is commonly known as a MSE and mean absolute percentage e
or which is commonly known as MAPE measures of biasness in the data. The best method is selected on the basis of value of this biasness. The methods with the least value of mean absolute deviation or mean square e
or or mean absolute percentage e
or is considered as the best method of forecasting the data.
The formula for mean absolute deviation (MAD) is given by sum (At-Ft)/n. the formula for mean square e
or (MSE) is given by sum(At-Ft)^2/n. The formula for mean absolute percentage e
or (MAPE) is given by (100/n)*sum(|(At-Ft)/At|).
The value of mean absolute deviation for 2 year Moving average, 3 year moving average, exponential smoothing and trend adjusted exponential smoothing is 27453.5, 39736.17, 37066.43 and 23524.6 respectively. The value of mean square e
or for 2 year Moving average, 3 year moving average, exponential smoothing and trend adjusted exponential smoothing is 810860743.4, 1581048559, 1791041292, and 797385436.9 respectively. The value of mean absolute percentage e
or for 2 year Moving average, 3 year moving average, exponential smoothing and trend adjusted exponential smoothing is 04.17%, 05.97%, 05.70% and 03.65% respectively.
The formula for moving average is given by F(t+1) = sum(At/n); t = 1, 2, .., n. the formula for exponential smoothing ES; F(t+1) = Ft + a(At – Ft). The forecast regarding number of establishments less than 1 year old for in the United States using trend adjusted exponential smoothing for the year 2016 and 2017 is 687574.7 and 692267.8. This is the most reliable forecast. Forecast for year 2016 and 2017 using 2 year Moving average MA(2) is 665926 and 672499. Forecast for year 2016 and 2017 using 3 year Moving average MA(3) is 653643.333 and 661831.778. The forecast regarding number of establishments less than 1 year old for in the United States using exponential smoothing for the year 2016 is 638168.652
The least value of MAD, MSE and MAPE is for trend...
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