Question

Ch 04 HW 3 Forecasting problem Method: Weighted Moving Average with n = 3 and weights 0.2, 0.3, and 0.5 The data for this problem is shown in the table below. Note: changes from the original problem data are highlighted in yellow. Time (t) Actual A(t) 1 950 2 930 3 940 4 955 5 972 6 926 7 834 8 840 9 828 10 813 11 don't have yet What is the value for MAD using this method?   

Answer 1

	Actual	Weighted
1	950
2	930
3	940
4	955	939
5	972	945.5
6	926	960.5
7	834	945.6
8	840	889.2
9	828	855.4
10	813	832.8
11		822.9

period	demand	forcast	forecast error=demand value-forecast value	absolute forecast error
t	Dt	Ft	et=Dt-Ft	| et |
1	950
2	930
3	940
4	955	939.000	16.00	16.00
5	972	945.500	26.50	26.50
6	926	960.500	-34.50	34.50
7	834	945.600	-111.60	111.60
8	840	889.200	-49.20	49.20
9	828	855.400	-27.40	27.40
10	813	832.800	-19.80	19.80
11		822.900

	forecast error=demand value-forecast value	absolute forecast error
	et=Dt-Ft	| et |
total sum=	-200.00	285.00
n=	7	7
average=	-28.57	40.71

MAD=   Σ |et|/n =    40.71

THANKS

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