Historical demand for clothes at a Hot Tropic store is as follows:
|
Month
|
Demand
|
|
January
|
15
|
|
February
|
18
|
|
March
|
31
|
|
April
|
39
|
|
May
|
44
|
|
June
|
53
|
(a) Develop forecasts for May and June using a three-month moving average.
(b) Develop forecasts for May and June using Holt's model with α = 0.2, and β =0.1.
(c) What is the MAD for the forecasted demand in (a) and (b)? Which model will you choose?