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Class Exercise Forecasting Question- SMA, WMA, Exponential Smoothing, MAD (mean abso Sales for the last 12 months at a company are the following: Month Deviation Deviation Jan 20 Feb 24 Mar 27 22.4 4.6 Apr 31 23.6 7.4 25.8 5.2 May 37 27.3 9.7 29.4 7.6 Jun 47 31.7 15.3 34.6 12.4 Jul 53 38.3 14.7 43 10 MAD 11.8 MAD a. Calculate the forecast, for every possible month, according to the Simple Moving Averag 3-Month SMA Calculate the MAD for this forecast. b. Calculate the forecast, for every possible month, according to the 2-Month Weighted Mo (Weights are 0.6 for the most recent month and 0.4 to the month before that) Calculate the MAD for this forecast. c. Calculate the forecast, for every possible month, according to the Exponetial Smoothing (Alpha is 0.6) Given that the forecast for January is 22 Calculate the MAD for this forecast. d. Which forecasting method would you choose for your company? I would choose the exponential smoothing method for my company for forecasting future s e. Why? Actual Sales ($ M) Forecast3- Month Simple Moving Average Forecast 2- Month Weighted Moving Average