Question
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
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 1 2 3 4 5 6 7 1 2 3 4 5 426 474 468 408 402 480 420 6 7 Month Actual Forecast 426 474 468 408 402 450 471 438 405 441 480 420 Using 3-month moving average Error 456 450 426 430 18 63 36 75 21 Error | 48 48 54 10 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 3-month moving average neither
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Business Statistics A Decision Making Approach
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
9th Edition
013302184X, 978-0133021844
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