The following table represents sales data for milk (in hundred liters) sold by a grocery. Do the computations to fill out the table and answer the following questions: Using MAD as the criterion, which of the following models would you use for the given time series data? Why? Naïve approach; 5-month SMA model; WMA model with weights 0.1, 0.3, and 0.6; or ES model with α = 0.5 and a forecast of 3,500 liters in the first month. NOTE: In answering Item 1, mention the whole description of the model; i.e., not just “SMA model”, but “SMA model with n = …”; not just “WMA model”, but “WMA model with weights …”; not just “ES model”, but “ES model with α = …”. Interpret the MAD of the most accurate among the forecasting models above. 3. Based on your decision in Item 1, what should be the forecast for Month 11? 13B15....TOATMTLMMonth100JA-F|IA-F||JA-F|JA - F|liters39473394445.49484585653106111MAD9.7. 211. Using MAD as the criterion, which of the following models would you use for thegiven time series data? Why?A. Naive approach;B. 5-month SMA model;C. WMA model with weights 0.1, 0.3, and 0.6; orD. ES model with a =0.5 and a forecast of 3,500 liters in the first month.NOTE: In answering Item 1, mention the whole description of the model; i.e., notjust "SMA model", but "SMA model with n =..."; not just "WMA model", but "WMAmodel with weights ..."; not just "ES model", but "ES model with a =2. Interpret the MAD of the most accurate among the forecasting models above.3. Based on your decision in Item 1, what should be the forecast for Month 11?Actual100 litersDemandNASMAWMAESMonth100JA - F|F|A - F|FJA - FIJA - F|liters3947339444

Answered: Using MAD as the criterion, which of…

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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The following table represents sales data for milk (in hundred liters) sold by a grocery. Do the computations to fill out the table and answer the following questions:

Using MAD as the criterion, which of the following models would you use for the given time series data? Why?
Naïve approach;
5-month SMA model;
WMA model with weights 0.1, 0.3, and 0.6; or
ES model with α = 0.5 and a forecast of 3,500 liters in the first month.

NOTE: In answering Item 1, mention the whole description of the model; i.e., not just “SMA model”, but “SMA model with n = …”; not just “WMA model”, but “WMA model with weights …”; not just “ES model”, but “ES model with α = …”.

Interpret the MAD of the most accurate among the forecasting models above. 3. Based on your decision in Item 1, what should be the forecast for Month 11?