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Choosing a Forecast Method - M07 Over the last 18 months, the business manager has trying to decide between using a 3 month moving

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Choosing a Forecast Method - M07 Over the last 18 months, the business manager has trying to decide between using a 3 month moving average or a 5 month moving average to forecast future demand. When you compare how well the two different models performed, you get the following result: SMA3 Month Orders Forecast Error SMA5 Forecast Error Jan 23 Feb 26 Mar 25 Apr 22 25 3 May 26 24 Jun 27 24 Jul 24 25 Aug 27 26 Sep 29 26 23 113 24 25 1 25 312 3 25 4 Oct 29 27 Nov 26 28 22 27 2 27 1 Dec 31 28 Jan 32 29 3 mm 3 Feb 28 30 2 222 Mar 28 30 2 29 Apr 35 29 6 29 May 33 30 3 31 441162 Jun 37 32 5 31 6 MAD 2.7 MAD 2.9 MSE 9 MSE 12 Explain why one is a more accurate forecast than the other.... but don't just say that "it has less error" or that the "mean standard deviation is higher or lower"... really explain, in your own terms, what these very clever spreadsheet calculations actually mean.

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