Question: A) The 6-month moving average because it has the lowest forecast value.B) The exponential smoothing because it's forecast for June 2016 is closest to May
A) The 6-month moving average because it has the lowest forecast value.B) The exponential smoothing because it's forecast for June 2016 is closest to May 2016C) The exponentially smoothed forecast because it has the lowest MAD ScoreD) The 6 month weighted moving average because it has the highest MAD score

The National Association for Realtors Website (realtor.org) shares historical average home sale prices for different regions of the U.S. Here Is the data for the median sale price for the West region over the past year by month (May 2015 - May 2016). Median Sale Price for the West Month May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 West 325,800 331,300 329,300 322,000 322,200 324,200 321,700 324,900 313,400 312,300 322,500 337,800 348,100 The following averaging forecasts were done with their associated MAD scores. 6-Month Moving Average - forecast for June 2016 Is $326.500. MAD score = 10,107.14 6-Month Weighted Moving Average - forecast for June 2016 Is $329,711. MAD score = 10,147.62 Exponential Smoothing, a = 0.35 - forecast for June 2016 is $333,568. MAD score = 6,651.72 Which forecasting method is best
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
