Question: Two different methods, A and B, are used to forecast demand for T-shirts. The actual and forecasted demands for the past 5 months are as

Two different methods, A and B, are used to forecast demand for T-shirts. The actual and forecasted demands for the past 5 months are as follows:

Actual ____A____B

23 19 20

15 13 15

11 19 23

27 25 20

22 22 20

Which method will you recommend and why?

Method B because its MAD is 1, which is lower than that of A.

Method B because its MAD is 4.8, which is lower than that of B.

Method A because its MAD is 3.2, which is lower than that of B.

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