Evaluate 2-month moving average and Exponential smoothing by MAD.
The following 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.