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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• 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?
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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