Compare the two forecasts by utilizing mad

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Reference no: EM1316020

Compute a 3-month and weighted moving average and also compare the forecast using MAD.
The manager of the Carpet City outlet needs to make an accurate forecast of the demand for Soft Shag carpet (its biggest seller). If the manager does not order enough carpet from t he carpet mill, customers will buy their carpet from one of Carpet's City's many competitors. The manager has collected the following demand data for the past 8 months:
Month Demand for Soft Shag Carpet (1,000 yd.)

1 8
2 12
3 7
4 9
5 15
6 11
7 10
8 12

A. Compute a 3-month moving average forecast for months 4 through 9(use excel)

B. Compute a weighted 3-month moving average forecast for months 4 through 9. Assign weights of .55, .33, and .12 to the months is sequence, starting with the most recent month.

C. Compare the two forecasts by using MAD. Which forecast appears to be more accurate?

Reference no: EM1316020

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