A company uses the simple moving average technique using the latest three data points to do its forecasting. Its actual results and its forecasts are shown below.

Month	Actual	Forecast	Absolute Deviation
1	4
2	6
3	7
4	9	5.67	3.33
5	11	7.33	3.67

Calculate the Mean Absolute Deviation for months 4 and 5.

One of its engineers believes that a weighted moving average would provide better forecasts. In one paragraph describe why this will or will not work?

Propose a set of weighting factors and make new forecasts for months 4 and 5 based on those new weighted moving average factors. Insert these values in the table below along with the Absolute Deviations for months 4 and 5 in then shaded areas below.

Month	Actual	Forecast	Absolute Deviation
1	4
2	6
3	7
4	9
5	11

Calculate the Mean Absolute Deviation for months 4 and 5 in the new table above.