A)- Explain the calculation method for the Naive Forecast model. B) If at the end of every month from January/2019 to December/2019, the Sales Manager would have applied the Naive Model, calculate the Naive Forecast values for the months of February/2019 and all the way to January/2020. Enter those values on the table above. C) Calculate the Absolute Value of Error for every forecasted month, from February/2019 to December/2020. Enter those values on the table above.
A)- Explain the calculation method for the Naive Forecast model. B) If at the end of every month from January/2019 to December/2019, the Sales Manager would have applied the Naive Model, calculate the Naive Forecast values for the months of February/2019 and all the way to January/2020. Enter those values on the table above. C) Calculate the Absolute Value of Error for every forecasted month, from February/2019 to December/2020. Enter those values on the table above.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:A)- Explain the calculation method for the Nalve Forecast model.
B) If at the end of every month from January/2019 to December/2019, the Sales Manager would have
applied the Naive Model, calculate the Naive Forecast values for the months of February/2019 and all
the way to January/2020. Enter those values on the table above.
C) Calculate the Absolute Value of Error for every forecasted month, from February/2019 to
December/2020. Enter those values on the table above.
D)- Why are there months when the Absolute Value of Error is very low and months when it is much
higher?
E)- Calculate the Mean Absolute Deviation (MAD), the Mean Squared Error (MSE) and the Mean
Absolute Percent Error (MAPE) for the Naïve Forecast you created for Product X from March/2019 to
December/2020 (not from February/2019 to January/2020).
redictions: On.

Transcribed Image Text:Month
Actual Sales
Naive Forecast-
Absolute Value of
(# of Product X)
Sales
Errors
(# of Product X)
Jan/19
Feb/19
Mar/19
Apr/19
May/19
Jun/19
Jul/19
Aug/19
Sep/19
Oct/19
Nov/19
Dec/19
Jan/20
1,860
2,033
3,556
4,211
6,250
7,990
10,250
9,850
9,980
9,990
7,895
5,353
- Explain the calculation method for the Naive Forecast model.
the faln
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