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The distance driven by a transport company's truck monthly is shown below with forecasts using 2-month and 3-month moving averages. Using 2-month moving average Month
The distance driven by a transport company's truck monthly is shown below with forecasts using 2-month and 3-month moving averages. Using 2-month moving average Month Actual Forecast | Error] 1 480 2 450 3 390 465 75 4 390 420 30 5 426 390 36 6 378 408 30 7 444 402 42 Using 3-month moving average Month Actual Forecast |Error] 1 480 2 450 3 390 4 390 440 50 5 426 410 16 6 378 402 24 7 444 398 46 a) What is the MAD (MAE) for the 2-month moving average forecasts? b) What is the MAD (MAE) for the 3-month moving average forecasts? c) Which of the two forecasting methods provides better accuracy? O2-month moving average 0 3-month moving average O neither Next
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