Use a three-period moving average method to determine forecast value for time 5 to 7. Use an averaging all data point method to determine forecast value for time 5 to 7. Compare the above methods based on MAD values. Which one you prefer? Why?
Use a three-period moving average method to determine forecast value for time 5 to 7. Use an averaging all data point method to determine forecast value for time 5 to 7. Compare the above methods based on MAD values. Which one you prefer? Why?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:• Time
• 1. 2. 3 . 4• 5 6 7
•Demand 25 32 28 33 35 26 36
Use a three-period moving average method to determine forecast value for time 5 to 7.
Use an averaging all data point method to determine forecast value for time 5 to 7.
Compare the above methods based on MAD values. Which one you prefer? Why?
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