Question: Two independent methods of forecasting based on judgment and experience have been prepared each month for the past four months. The forecasts and the actual

Two independent methods of forecasting based on

Two independent methods of forecasting based on judgment and experience have been prepared each month for the past four months. The forecasts and the actual sales are as follows: a. Forecast month No 5 in forecast-1, by using a weighted average forecast with weights .5 for the previous month, 0.3 for the month before that, and 0.2 for the last month b. Forecast month No 5 for forecast-2, by using exponential smoothing with a=0.85 c. Given the sales of months 5,6,7 to be (799, 812, 815) compute the above forecasts with the same models (weighted average for F-1 and exponential smoothing for F-2), and then calculate MAD and decide which technique is superior. Hint: Don't forget to calculate month (8) Question: up to which month will you calculate MAD? PLEASE TYPE YOUR ANSWER BELOW. Month Sales Forecast 1 Forecast 2 1 779 775 773 2 785 783 787 3 791 790 793 4 795 793 794 5 6 7 8

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