Year
Month
Demand
MA(1)
Absolute Deviation MA(4)
Absolute Deviation
2018 January
12,354
2018 February
13,657
2018 March
14,536
2018 April
13,478
2018 May
16,590
2018 June
19,790
2018 July
17,987
2018 August
18,657
2018 September
19,765
2018 October
18,678
2018 November
20,678
2018 December
23,675
2019 January
?
1a. (15 pts) Use the moving average method (N=1) to forecast sales for each period.
Fill out the light gree cells in colume D. Note that the answer may contain empty cells.
1b. (10 pts) Compute the mean absolute deviation (MAD). Show your steps in colume E.
MAD
1c. (20 pts) Use the moving average method (N=3) to forecast sales for each period.
Fill out the light gree cells in colume F. Note that the answer may contain empty cells.
1d. (10 pts) Compute the mean absolute deviation (MAD). Show your steps in colume G.
MAD
1e. (5 pts) Which forecasting method is more accurate based on MAD, MA(1) or MA(4)? Why?
1f. (5 pts) Do you think a forecasting method that corrects for trend and seasonality can provide better forecast? Why?
PLEASE DO NOT FORGET TO ANSWER THE SET OF QUESTIONS IN THE NEXT EXCEL TAB