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This means that on average, each forecast possibly could miss the actual value by $16.66. Next, moving average 4 periods revealed a MAD of 20.00. This means that on average, each forecast missed the actual value by 20. Last, moving average 5 periods revealed a MAD of 18.4. This means that on average, each forecast missed the actual value by $18...


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This means that on average, each forecast missed the actual value by $18.4. Thus, the moving average 3 periods is the lowest MAD.

Exhibit 2: An analysis of forecasting using the Weighted Moving Averages Method.

A weighted average is any average that has multiplying factors to give different weights to different data points...


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