The Zocor Company is interested in forecasting period 13 sales for a product.It has 12 months of historical data.The following shows the data and the forecasted valued for periods 1-12 using a single exponential smoothing model with a smoothing constant value equal to 0.20 What is the value of the MAD for periods 2-12?
A)About 19.6
B)Nearly 6
C)Approximately 15.4
D)Can't be determined without more information

Question

The Zocor Company is interested in forecasting period 13 sales for a product.It has 12 months of historical data.The following shows the data and the forecasted valued for periods 1-12 using a single exponential smoothing model with a smoothing constant value equal to 0.20  What is the value of the MAD for periods 2-12?
A)About 19.6 
B)Nearly 6 
C)Approximately 15.4 
D)Can't be determined without more information

Quizplus · Accepted Answer

To calculate MAD, we need to compare the actual values with the forecasted values for each period. However, the actual values are not given in the question. Therefore, we cannot calculate the absolute deviations and hence the MAD.

The Zocor Company Is Interested in Forecasting Period 13 Sales