Interpret the MAD of the most accurate among the forecasting models below. A. Naïve approach; B. 5-month SMA model; C. WMA model with weights 0.1, 0.3, and 0.6; or D. ES model with α = 0.5 and a forecast of 3,500 liters in the first month.

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Interpret the MAD of the most accurate among the forecasting models below.

A. Naïve approach;
B. 5-month SMA model;
C. WMA model with weights 0.1, 0.3, and 0.6; or
D. ES model with α = 0.5 and a forecast of 3,500 liters in the first month.

Actual
100 liters
Demand
NA
SMA
WMA
ES
Month
100 liters
F
|A – F|
F
|A – F|
F
|A – F|
F
|A – F|
1
39
47
39
4
44
49
6.
48
7
45
8
56
9
53
10
61
11
MAD
Transcribed Image Text:Actual 100 liters Demand NA SMA WMA ES Month 100 liters F |A – F| F |A – F| F |A – F| F |A – F| 1 39 47 39 4 44 49 6. 48 7 45 8 56 9 53 10 61 11 MAD
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