12-1.
The Hartley-Davis motorcycle dealer in the Minneapolis– St. Paul area wants to
be able to forecast accurately the demand for the Roadhog Super motorcycle
during the next month. From sales records, the dealer has accumulated the data
in the following table for the past year.
Month
Motorcycle Sales
January
9
February
7
March
10
April
8
May
7
June
12
July
10
August
11
September
12
October
10
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.
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?
