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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 threeperiod moving average, exponential smoothing with an 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 decimal places, eg Round your answers to decimal places,eg
Forecasts using a threeperiod moving average:
MAD criteria
MSE criteria
Forecasts using exponential smoothing with :
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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