Ed Rogers Owns an Appliance Store Which Is the Better Forecasting Model, Based on the MAD

question 43

Essay

Ed Rogers owns an appliance store. Sales data on a particular model of a DVD player for the past six months are shown below along with the results of two different forecasting models that were developed. $\begin{array}{|l|c|c|c|}\hline \text { Month } & \text { Sales } & \text { Forecast 1 } & \text { Forecast 2 } \\\hline \text { Jan } & 35 & 30 & 25 \\\hline \text { Feb } & 29 & 28 & 27 \\\hline \text { Mar } & 39 & 43 & 40 \\\hline \text { Apr } & 42 & 40 & 39 \\\hline \text { May } & 51 & 48 & 41 \\\hline \text { Jun } & 56 & 55 & 53 \\\hline\end{array}$ Which is the better forecasting model, based on the MAD criterion?

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Definitions:

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A type of microphone designed to capture sound equally well from all directions, often used in conference rooms and for recording ambient noise.