Question: Forecast years 5-8 using the moving average method with the averaging periods of 1 and 2. Calculate MAD values using values for years 5-8 for

Forecast years 5-8 using the moving average method with the averaging periods of 1 and 2. Calculate MAD values using values for years 5-8 for both models. Which model is more accurate based on MAD?

Year

Actual

Sales

Forecast

AP=1

Forecast

AP=2

1

565

2

590

3

583

4

597

5

615

6

611

7

610

8

623

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