Your company has the sales for year 1 below. You want to select from one of three models for forecasting: a three-month moving average, a weighted moving average (you believe that the weights should be 0.2, 0.3, and 0.5), and an exponential smoothing average in which you use an alpha of 0.2 and an assumed forecast for January of year one of $35,000. Determine sales forecast for January year 2 and calculate MAD.

Jan Yr 1 35826

Feb 34561

Mar 31501

Apr 32429

May 34681

Jun 35022

Jul 35640

Aug 35896

Sep 34542

Oct 32580

Nov 31971

Dec 32900

A) Three-month moving average:

Sales forecast:

MAD:

B) Weighted moving average:

Sales forecast: $

MAD:

C) Exponential moving average:

Sales forecast: $

MAD:

Which forecasting method should you use for your company? (enter A, B, C):