A retail store reports the following monthly sales:

Month Sales (thousands of dollars)

1	110
2	125
3	90
4	115
5	110
6	130
7	80
8	100
9	90
10	85
11	110
12	90
13	105
14	125
15	90
16	105
17	120

1. Compute a 3 month moving average forecast and a 5 month moving average forecasts for months 8 through 17.

2. Compute the mean absolute deviation (MAD) for the two forecasts based upon months 8 through 17 and determine which forecast is more accurate.

3. Based upon the more accurate forecast, compute the forecast for month 18.

Answer rating: 100% (QA)

Ans 1 The 3month and the 5month moving average forecasts for months 8 through 17 can be seen in the ... View the full answer