Question: forecasting the transformer requirement in the future. We would like to select the best method from (1) a 5-period moving average, (2) a weighted moving
forecasting the transformer requirement in the future. We would like to select the best method from (1) a 5-period moving average, (2) a weighted moving average with weights (0.5,0.3,0.2), and (3) an exponential smoothing method with a smoothing constant of 0.2 . To this end, we need to compute the MAD for each method. Hint, when calculating MAD, you need to forecast and calculate forecasting errors for all possible periods (whenever applicable). For example, when working on MAD for a 5-period moving average, you need to forecast from period 6 to period 60 . 1. Using the 60-period data shown in Exhibit 1, what is the MAD for the 5-period moving average? Please round your final answer to the nearest integer.Group of answer choices a. None of the other answers is correct b. 15 c. 7527 d. 137 e. 125 2. Using the 60-period data shown in Exhibit 1, what is the MAD for the weighted moving average with weights (0.5,0.3,0.2) ? Please round your final answer to the nearest integer and input it (only the number) below. Using the 60 -period data shown in Exhibit 1, what is the MAD for the weighted moving average with weights (0.5,0.3,0.2) ? Please round your final answer to the nearest integer and input it (only the number) below. 3. Using the 60-period data shown in Exhibit 1, what is the MAD for the exponential smoothing method with a smoothing constant 0.2 ? Please round your final answer to the nearest integer. Group of answer choices a. 6813 b. 115 c. 114 d. 29
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