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PLEASE REFER TO THE PICTURE FOR BETTER UNDERSTANDING. The following historical data have been collected representing sales of a product. Compare forecasts using a three

PLEASE REFER TO THE PICTURE FOR BETTER UNDERSTANDING. The following historical data have been collected representing sales of a product. Compare forecasts using a three-period moving average, exponential smoothing with an a=0.2, and linear
regression. Using MAD and MSE, which forecasting model is best? Are your results the same using the two error measures?
(Round intermediate calculations to 3 decimal places, e.g.15.251. Round your answers to 2 decimal places,e.g.15.26.)
Forecasts using a three-period moving average:
MAD criteria
MSE criteria
Forecasts using exponential smoothing with a=0.2 :
MAD criteria
MSE criteria
Forecasts using linear regression:
MAD criteria
MSE criteria
The
model provides the best historical fit using the MAD criteria.
The
model provides the best historical fit using the MSE criteria.
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