Sales for the past 12 months at computer success are given here: January 3,000 July 6,300 february 3,400 August 7,200 march 3,700 September 6400 april 4100 October 4600 may 4700 November 4200 june 5700 December 3900 use a 3 month moving average to forecast sales for the months May through December  use a 4 month moving average to forecast the sales for the months may through December  compare the performance of the two methods by using the mean absolute deviation as the performance criterion. Which method would you recommend?

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Sales for the past 12 months at computer success are given here:

January 3,000 July 6,300

february 3,400 August 7,200

march 3,700 September 6400

april 4100 October 4600

may 4700 November 4200

june 5700 December 3900

use a 3 month moving average to forecast sales for the months May through December 

use a 4 month moving average to forecast the sales for the months may through December 

compare the performance of the two methods by using the mean absolute deviation as the performance criterion. Which method would you recommend?

 

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