Question: The manager has collected the following demand data for the past eight months. Compute the three-month moving average forecast for months 4-9. Compute the weighted three-month moving average forecast for months 4 – 9 (assign weights .55, .33, and .12 to the months in sequence, starting with the most recent month). Compare the two forecasts using MAD. Which forecast appears to be more accurate?

Demand for Soft Shag

MONTH Carpet (1,000 yd)