Time Period
Demand
6 years ago
28
5 years ago
21
4 years ago
42
3 years ago
35
2 years ago
56
Last year
49
A. What is this year’s forecast using a three-year moving average?
B. What is this year’s forecast using a three-year weighted moving average, where the weights are .5, .3, .2?
C. What is this year’s forecast using the linear trend method.
D. Which forecast method has the smallest Mean Absolute Deviation (MAD), based upon forecasts for the latest 3 years of data?
Expert Answer
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The Mean Absolute Deviation (MAD) is lowest for Linear trend method