c-1. Calculate MAD for each method. (Round your answers to 2 decimal places.)MADThree-month movingaverageExponential smoothingc-2. Use MAD to decide which method produced the better forecast over the six-month period.Exponential smoothing.Three-month moving average. Here are the actual tabulated demands for an item for a nine-month period (January through September). Your supervisor wants to testtwo forecasting methods to see which method was better over this period.MONTHАCTUALJanuaryFebruaryMarchApril124125154174May161June180JulyAugustSeptember144138142a. Forecast April through September using a three-month moving average. (Round your answers to 2 decimal places.)Three-MonthMoving Average134.33MonthAprilMay151.00June163.00July171.66August161.66September154.00b. Use simple exponential smoothing with an alpha of 0.40 to estimate April through September, using the average of Januarythrough March as the initial forecast for April. (Round your answers to 2 decimal places.)ExponentialSmoothingMonthApril142.20May154.92June157.35July166.41August157.45September149.67

C-1 Mean Absolute Deviation for three month moving average is calculated in the below table-…

c-1. Calculate MAD for each method. (Round your answers to 2 decimal places.) MAD Three-month moving average Exponential smoothing c-2. Use MAD to decide which method produced the better forecast over the six-month period.

c-1. Calculate MAD for each method. (Round your answers to 2 decimal places.) MAD Three-month moving average Exponential smoothing c-2. Use MAD to decide which method produced the better forecast over the six-month period.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.7: Exponential Smoothing Models

Problem 27P: The file P13_27.xlsx contains yearly data on the proportion of Americans under the age of 18 living...

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Under what conditions might a firm use multiple forecasting methods?
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