The following table shows the capacity required (in thousands of unspecified units) for the production of an Onlineservice over the next 18 months.

Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Demand 25 30 32 33 32 31 30 29 28 28 29 31 30 32 33 32 34 35

1. 1. Based on MAD, which model is better, a 6 month or a 4 month moving averages? Based on your selection, what is the forecast for month 25?
2. 2. Based on MAD, which model is better, an exponential smoothing with smoothing constants of 0.7 or 0.8? Based on your selection, what is the forecast for month 25?
3. 3. Does a linear regression model is better than any of the previous (four) models?Explain.