Measuring Forecast Error

Example $4-$ In this example we practice with calculating the different forecasting methods and forecast errors. We will use the data from the Carbondale Hospital in Example $1.$

$($a$)$ Find the MAD based on the $2-$year simple moving average. Note that we have no forewast for periods $1$ and $2,$ so we only have $3$ years of matched data; periods for which we have both actual data and forecast datia.

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