Question 1 - In this exercise you should calculate three types of averages, the absolute forecast error and the mean absolute deviation (MAD) and explain the accuracy. a) Calculate the straight average for 6 months b) Calculate the moving average for 3 months c) Calculate the weighted moving average (WMA) for 3month d) Calculate the absolute forecast error e) Calculate the MAD Weighting assumptions: Month 1 = 0.5 Month 2 = 0.3 Month 3 = 0.2 Month 1 2 3 4 5 Historical Forecasted Straight Moving WMA Actual Sales average Average (3 6 Absolute forecast Values (3 month) error month) January 153 151 February 149 150 March 151 150 April 152 150 May 147 151 June 151 150 July 150 Total Question 1b - Which of the forecasts is the most accurate and why? 7 MAD