Refer to Table 6-3. Calculate MAD for all forecasting models. The model you would use for your forecast,
based on MAD is ________.
Fill in the blanks with correct word
Table 6-4. Solutions to Calculation of MAD
Time
Period
Actual
Sales
3 Month
Moving
Average
Absolute
Deviation
Weighted
Moving
Average
W=.1,.3,.
6
Absolute
Deviatio
n
Exponentia
l
Smoothing
F
t = 350
Absolute
Deviation
1 230 350
2 238 326 88
3 260 308 48
4 275 243 32 250 25 299 24
5 300 258 42 267 33 294 6
6 285 278 7 289 4 295 10
7 270 287 17 289 19 293 23
8 290 285 5 278 13 289 1
9 305 282 23 284 22 289 16
10 320 288 32 297 23 292 28
11 335 305 30 313 23 298 37
12 320 328 305
SUM = 188 159 282
n = 8 8 10
MAD 23.5 19.875 28.245
We would choose the Weighted Moving Average Model, as it has the lowest MAD of 19.875.
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