Question: Demand Forecasting You are deciding between the SMA (n=3) or SMA (n=5) forecasting models (from the previous question), using forecast and actual data from
Demand Forecasting You are deciding between the SMA (n=3) or SMA (n=5) forecasting models (from the previous question), using forecast and actual data from the previous 12 years. The Mean Absolute Deviation (MAD) on the SMA (n=3) is 5.86, and on the SMA(n=5), it's 6.32. Which model is more accurate; specifically, contains less error? SMA (n=3) SMA(n=5) Use either, as both fall within the range of negligible error (RNE) for 12 years of data Neither is usable; error is too high on both
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