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Forecasting {Sometimes it is useful to consider extreme cases in order to understand the models that we are using) Consider a case where demand alternates

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Forecasting {Sometimes it is useful to consider extreme cases in order to understand the models that we are using) Consider a case where demand alternates between two values that are x units apart. ,- Etc... 2" If demand continues this way and we perform forecasts for 20 future periods using a Simple Moving Average (n=2) model, what will the MAD be? What will the CFE be? (Note it is possible to determine an answer without any actual data, since demand follows a specic pattern, but if you want to make up data that follows the pattern in order to determine or test your answer, that is ne.)

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