Question: Consider the time series below. Complete parts a through e below. a ) Forecast the demand for Period 8 using a two - period simple
Consider the time series below. Complete parts a through e below.
a Forecast the demand for Period using a twoperiod simple moving average.
The forecasted demand for Period using a twoperiod simple moving average is
Type an integer or a decimal. Do not round.
b Calculate the MAD for the forecast in part a
MAD
Round to three decimal places as needed.
c Forecast the demand for Period using a threeperiod simple moving average.
The forecasted demand for Period using a threeperiod simple moving average is
Round to two decimal places as needed.
d Calculate the MAD for the forecast in part c
MAD
Round to three decimal places as needed.
e Which forecast would you choose?
Choose the correct answer below.
A Choose the threeperiod simple moving average, because it has the higher MAD.
B Choose the threeperiod simple moving average, because it has the lower MAD.
C Choose the twoperiod simple moving average, because it has the lower MAD.
D Choose the twoperiod simple moving average, because it has the higher MAD.
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