Question
Sales for refrigerators are given in the table below. Using a 3-month moving average, forecast sales for February the following year. Calculate the MAD for
- Sales for refrigerators are given in the table below. Using a 3-month moving average, forecast sales for February the following year. Calculate the MAD for this model.
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| 3-Month | Absolute |
| Month | Sales | Moving Average | Deviation |
| January | 11 |
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| February | 14 |
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| March | 16 |
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| April | 10 |
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| May | 15 |
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| June | 17 |
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| July | 11 |
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| August | 14 |
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| September | 17 |
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| October | 12 |
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| November | 14 |
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| December | 16 |
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| January | 11 |
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| February |
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Use the weighted moving average to forecast sales for February the following year . Calculate the MAD for this model.
Which model is better?
| Month | Sales | 3-Month Weighted Moving Average | Absolute Deviation |
| January | 11 |
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| February | 14 |
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| March | 16 |
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| April | 10 |
|
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| May | 15 |
|
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| June | 17 |
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| July | 11 |
|
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| August | 14 |
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| September | 17 |
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| October | 12 |
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| November | 14 |
|
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| December | 16 |
|
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| January | 11 |
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| February |
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Intermediate Accounting
Authors: Earl K. Stice, James D. Stice
18th edition
538479736, 978-1111534783, 1111534780, 978-0538479738
