Equate 2-month moving average and Exponential smoothing using MAD.
The subsequent data represents demand for company ABC's products for the last 10 months.
|
Months
|
Demand
|
|
1
2
3
4
5
6
7
8
9
10
|
450
463
520
500
510
516
534
525
530
534
|
(a) What is the forecast for month 11?
(b) Which provides a better forecast-the two-month moving average or exponential smoothing? Explain using the mean absolute deviation.