Question: Problem 2: Forecasting (10 points) Given these sales figures over the last 6 weeks, your boss needs you to test two different forecasting methods (parts
Problem 2: Forecasting (10 points) Given these sales figures over the last 6 weeks, your boss needs you to test two different forecasting methods (parts a and b below) to determine which method is best. For your measure of "best", recommend to your boss that the company should use the method with the lowest mean absolute deviation (MAD). Then use that method to provide your forecast for week 7 in part c. Week >WN Unit Sold 523 587 622 601 615 578 a) Create a 3 period moving average forecast for weeks 4-7 and then calculate the MAD. (4 points). b) Create a 2 period weighted moving average forecast for weeks 3-7 and then calculate the MAD. Use weights of 0.6 and 0.4, with the most recent observation weighted higher (4 points) c) How many units would you forecast will be sold in week 72 (2 points)
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