Table 14.10
TOMBOW is a small manufacturer of pencils and has had the following sales record for the most recent five months: Use an exponential smoothing model to forecast sales in months 2,3,4,and 5.Let the smoothing parameter equal 0.6;select F1 = 150 to get the forecast started.
-Use the information in Table 14.10.What is the MAD for months 2 through 5?

Question

Table 14.10
TOMBOW is a small manufacturer of pencils and has had the following sales record for the most recent five months:  Use an exponential smoothing model to forecast sales in months 2,3,4,and 5.Let the smoothing parameter equal 0.6;select F1 = 150 to get the forecast started.
-Use the information in Table 14.10.What is the MAD for months 2 through 5?

Quizplus · Accepted Answer

The Mean Absolute Deviation (MAD) is calculated by taking the average of the absolute errors over the specified months. Based on the given options, the MAD for months 2 through 5 falls between greater than 20 but less than or equal to 25.

Table 14.10 TOMBOW Is a Small Manufacturer of Pencils and Has Had