Question

Question 2 The table below shows the aggregate demand of pool cleaning equipment during the last 12 years for Watertech Company in Arizona YEAR> DEMAND 1,513 1,485 1,4911,4471,525 1,493 1,477 1,562 1,476 1,513 1,4 Please forecast the demand for 2017 using the following two methods 2005 2006 2007 2008 2009 2010 20112012 2013 2014 2015 2016 80 1,466 a. Simple Moving Average, SMA (5) b. Simple Exponential Smoothing (you define the value of 'a, that minimizes MSE error) Compare both methods in terms of the following metrics of error: MAD, MSE and MAPE. Based on accuracy, make a recommendation about the forecasted demand the company should use for 2017
A&B