A two factor smoothing model developed for quarterly revenues for Softskin is shown exhibit below Using the information provided in the exhibit, answer the following question:

Using the years 2009 through 2010 (8 quarters), calculate the MAD. What is your calculated MAD telling you about the model?

Alpha 20 Beta 30 Year Qtr t Revenue (5) F error 4,955 4,852 4,956 5,086 5,089 2009 Qtr 1 Qtr22 Qtr33 Qtr44 2010 Qtr15 Qtr26 Qtr37 Qtr4 8 2011 Qtr19 Qtr2 10 Qtr3 11 Qtr4 12 2012 Qtr113 Qtr2 14 Qtr3 15 Qtr4 16 2013 Qtrt 17 Qtr2 18 Qtr3 19 Qtr4 20 1921 20 22 4,391 5,466 5,543 4,903 4,479 5,193 5,397 4,923 4,079 5,433 5,322 4,795 4,502 -25 5,033 5,113 5,099 4,909 4,977 5,037 4,997 4,894 5,028 5,170 5,214 5,228 4,967 4,829 637 4,972 571 5,136 5,125 -646 4,993 200 5,042355 5,143 -220 5,116 -1,037 4,863 570 4,966 356 -252 4,992 -490 4,860842 5,045 626 5,224 -48 5,265 -187 5,267 698 5,488 137 5,671 5,176 5,078 5,965 40 5,407 81 5,625 5,515 5,257