Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Round your answers in part (c) to 2 decimal places, and round the MAD/MAE to 3 decimal places. (c) Calculate the MAD (mean absolute deviation),

image text in transcribed
Round your answers in part (c) to 2 decimal places, and round the MAD/MAE to 3 decimal places. (c) Calculate the MAD (mean absolute deviation), also known as the MAE (mean absolute error), for weighted moving averages for 2017-2019 (use results from the previous problem with weights 4,2, 1 starting from the most recent time period). Weighted Year Revenue Moving Absolute Error Averages 2014 8.5 2015 6.5 2016 8.4 2017 6.7 2018 8.3 2019 5.3 MAD/MAE = (d) Which method provides a better forecast of the revenue for 2017-2019? Round MAD/MAE to three decimal places. O 3-Year Moving Averages, since the MAD/MAE for 3-Year Moving Averages is greater than the MAD/MAE for Weighted Moving Averages. O Weighted Moving Averages, since the MAD/MAE for Weighted Moving Averages is greater than the MAD/MAE for 3-Year Moving Averages. O 3-Year Moving Averages, since the MAD/MAE for 3-Year Moving Averages is less than the MAD/MAE for Weighted Moving Averages. O Weighted Moving Averages, since the MAD/MAE for Weighted Moving Averages is less than the MAD/MAE for 3-Year Moving Averages. O None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Calculus

Authors: Dale Varberg, Edwin J. Purcell, Steven E. Rigdon

9th edition

131429248, 978-0131429246

More Books

Students also viewed these Mathematics questions