The following table shows the capacity required (in thousands of unspecified units) for the production of an Online service 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
- 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?
- 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?
- Does a linear regression model is better than any of the previous (four) models? Explain.