Actual sales for a t-shirt shop are shown below for the last 6 weeks. Use a 3-pe
ID: 397738 • Letter: A
Question
Actual sales for a t-shirt shop are shown below for the last 6 weeks.
Use a 3-period weighted moving average, with weights of 0.70, 0.20, and 0.10, to develop a forecast for periods 4 through 6. Also compute the absolute error for weeks 4 through 6. Finally, calculate mean absolute deviation (MAD). Round all answers to whole numbers. If the value for a cell is zero, do not leave it blank, enter 0.
Mean absolute deviation for this forecast =
Week Actual Sales Forecast |Error| 1 1400 2 1400 3 1400 4 1100 5 1200 6 800Explanation / Answer
Following may be noted :
Based on above, please refer below table for ready reference :
Week
Actual sales
Forecast
Absolute error
1
1400
2
1400
3
1400
4
1100
1400
300
5
1200
1190
10
6
800
1200
400
Sum =
710
Mean absolute Deviation for this forecast = 710 /3 = 236.67 ( rounded to 2 decimal places )
MEAN ABSOLUTE DEVIATION FOR THIS FORECAST =236.67
Week
Actual sales
Forecast
Absolute error
1
1400
2
1400
3
1400
4
1100
1400
300
5
1200
1190
10
6
800
1200
400
Sum =
710
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.