Question: We have calculated three forecasts using the demand data. First, for months 4 through 1 0 , we have developed the exponentially smoothing forecasts using

We have calculated three forecasts using the demand data. First, for months 4 through 10, we have developed the exponentially smoothing forecasts using a forecast for month 3(F3) of 120.0 and an alpha of 0.3. Second, we have calculated the three-month moving-average forecast for months 4 through 10. Third, we have calculated the weighted moving average for months 4 through 10, using weights of .60,.30, and .10, with 0.60 applied to the most recent data. We have also calculated the Mean Absolute Deviation (MAD) and the Cumulative sum of Forecast Error (CFE) for each forecasting procedure.
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Exponential Smoothing
Simple Moving Average
Weighted Moving Average
CFE
11.19
14.00
12.80
MAD
6.28
6.00
7.17
Which forecasting method would be chosen based on MAD?
Group of answer choices
Exponencial Smoothing
Simple Moving Average
Weighted Moving Average

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