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Data collected on the yearly demand for 50-pound bags of fertilizer at Wallace Garden Supply are shown in the following table. Develop a 3-year moving average to forecast sales. Then estimate demand again with a weighted moving average in which sales in the most recent year are given a weight of 2 and sales in the other 2 years are each given a weight of 1. Which method do you think is best? The Mean Absolute Deviation (MAD) for the above moving average forecast? What is the three-year weighted moving average forecast for Wallace Garden Supply ? What is the Mean Absolute Deviation (MAD) for the above weighted moving average forecast?
DEMAND FOR FERTILIZERYEAR (1,OOOS OFBAGS)
1 42 63 44 55 106 87 78 99 1210 1411 15
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