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The Harley Davidson motorcycle dealer in the Minneapolis-St. Paul wants to be able to forecast accurately the demand for the Roadhog Super motorcycle during the next month. Form sales records, the dealers have accumulated the data in the following table for the past year.
Month
Motorcycle Sales
January
9
February
7
March
10
April
8
May
June
12
July
August
11
September
October
November
14
December
16
a. Compute a three-month moving average forecast of demand for April through January (of the next year)
b. Compute a five-month moving average forecast for June through January (of the next year).
c. Compare the two forecasts computed in parts (a) and (b) using MAD. Which one should the dealer use for January of the next year?
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