Question: The department manager using a combination of methods has forecast sales of toasters at a local department store. Calculate the MAD for the manager's forecast.

  1. The department manager using a combination of methods has forecast sales of toasters at a local department store. Calculate the MAD for the manager's forecast. Compare the manager's forecast against a three-month weighted moving average forecast covering the same time period (5 last month, 3 second month, 2 third month. Which one is better? How is the forecast quality for both methods? Round each forecast to two decimal places.

Month

Unit Sales

Manager's Forecast

Three Month Weighted M.A.

January

52

February

61

March

73

April

79

May

66

66.25

June

51

69.75

July

47

67.25

August

44

60.75

September

30

52.00

October

55

43.00

November

74

44.00

December

125

50.75

January

71.00

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