Why would you use the MAD or Mean Absolute Deviation to determine…

Question Answered step-by-step Why would you use the MAD or Mean Absolute Deviation to determine… Why would you use the MAD or Mean Absolute Deviation to determine your smoothing constant in exponential smoothing? I have a project where I was told to use an alpha between .4 and .7, my professor told me to use the one that gave me the lowest MAD. Now I have to explain the forecasting sales data and I don’t know the reason why having a lower MAD is ideal. Please explain. Thank  you Engineering & Technology Industrial Engineering Operations Management MGT 3332 Share QuestionEmailCopy link Comments (0)