#47 The time series for sales of table salt is relatively stationary over time. Several different forecasts were created using a three-period simple movingaverage, a five-period simple moving average, simple exponential smoothing using a = 0.8, and simple exponential smoothing using a= 0.3. The MADwas calculated for each forecast. These values are shown in the table below. Based on this information, which of the following statements is true?Forecast TypeMADThree-Period Simple Moving Average1.56Five-Period Simple Moving Average2.58Simple Exponential Smoothing, a = 0.8Simple Exponential Smoothing, a = 0.30.750.98Multiple ChoiceThe simple exponential smoothing with alpha = 0.8 is the best model as its MAD is smallest.Either exponential smoothing model is recommended as both have MAD values below 1.00.Any of these models are recommended as the MAD values are all positive.The five-period simple moving average is the best forecast model as its MAD is the largest.< Prev.47 of 50Next >

Name: #47 The time series for sales of table salt is relatively stationary o
Uploaded: 2024-03-05T11:52:21.000Z
Channel: Bartleby
Description: #47 The time series for sales of table salt is relatively stationary over time. Several different forecasts were created using a three-period simple movingaverage, a five-period simple moving average, simple exponential smoothing using a = 0.8, and s