Compute a 3-month weighted average forecast for months 4 through 9. Assign weights of 0.55, 0.33 and 0.12 to the months in sequence, starting with the most recent month. Compare the two forecasts using MAD. Which forecast is better the 3-month moving average or the 3-month weighted moving average and why? 12345678910AMonth123456789BCDemand for Bronze Bearings 3-month Moving Average Error50100608014010090120708093.33333333106.6666667110103.3333333D1060E10Error²10036006.666666667 44.4444444-16.66666667 277.777778100-103.3333333 10677.7778

Forecasting is a technique used to predict future outcomes on the basis of past data. There are…

Compute a 3-month weighted average forecast for months 4 through 9. Assign weights of 0.55, 0.33 and 0.12 to the months in sequence, starting with the most recent month. Compare the two forecasts using MAD. Which forecast is better the 3-month moving average or the 3-month weighted moving average and why?

Compute a 3-month weighted average forecast for months 4 through 9. Assign weights of 0.55, 0.33 and 0.12 to the months in sequence, starting with the most recent month. Compare the two forecasts using MAD. Which forecast is better the 3-month moving average or the 3-month weighted moving average and why?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.4: Multiple Regression Models

Problem 13P: A trucking company wants to predict the yearly maintenance expense (Y) for a truck using the number...

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