The last seven weeks of demand at a new car dealer are shown below.
a) Use a three-period weighted-moving average to determine a forecast for the 8th week using weights of 3, 2, and 1. Calculate the MAD for this forecast.
b) use exponential smoothing with an alpha of 0.4 to determine a forecast for the 8th week and an initial forecast of 25 for week. calculate the MAD.
C) Which method will you use?
Week Sales
1 25
2 30
3 27
4 31
5 27
6 29
7 30
