The values of building contracts (in $millions) for a 12-month period following. Compare a three-month moving average forecast with an exponential smoothing forecast. Use a=0.2. Month = 1 2 3 4 5 6 7 8 9 10 11 12 Value = 240 350 230 260 280 320 220 310 240 310 240 230. a) Which provides the better forecasts based on MSE? b) Which provides the better forecasts based on MAD? c) Which provides the better forecasts based on MAPE? d) What are the forecast

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Chapter9: Solving Quadratic Functions
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The values of building contracts (in $millions) for a 12-month period following.

Compare a three-month moving average forecast with an exponential smoothing forecast. Use a=0.2.

Month = 1 2 3 4 5 6 7 8 9 10 11 12
Value = 240 350 230 260 280 320 220 310 240 310 240 230.

a) Which provides the better forecasts based on MSE?

b) Which provides the better forecasts based on MAD?

c) Which provides the better forecasts based on MAPE?

d) What are the forecasts for the next month?

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