Question: You have used six different forecasting techniques on the item you are trying to forecast future demands on. You have calculated the Mean Absolute Deviation
You have used six different forecasting techniques on the item you are trying to forecast future demands on. You have calculated the Mean Absolute Deviation (MAD) for each forecasting method and the results are listed below. Based on the MAD, which forecasting technique would be most appropriate?
| Forecasting technique | MAD |
| 1 month moving average | 5 |
| 2 month moving average | 2 |
| 3 month moving average | 4 |
| Exponential Smoothing =.2 | 5 |
| Exponential Smoothing =.4 | 4 |
| Linear Regression | 3 |
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