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Accuracy of forecasts. The manager of a large manufacturer of industrial pumps must choose betweentwo alternative forecasting techniques. Both techniques have been used to prepare forecasts for a sixmonth period. Using MAD as a criterion, which technique has the better performance record?FORECASTMonth Demand Technique 1 Technique 21           492           488                 4952           470           484                 4823           485           480                 4784           493           490                 4885           498           497                 4926           492           493                 493

Accuracy of forecasts. The manager of a large manufacturer of industrial pumps must choose betweentwo alternative forecasting techniques. Both techniques have been used to prepare forecasts for a sixmonth period. Using MAD as a criterion, which technique has the better performance record?FORECASTMonth Demand Technique 1 Technique 21           492           488                 4952           470           484                 4823           485           480                 4784           493           490                 4885           498           497                 4926           492           493                 493

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Accuracy of forecasts. The manager of a large manufacturer of industrial pumps must choose between
two alternative forecasting techniques. Both techniques have been used to prepare forecasts for a sixmonth period. Using MAD as a criterion, which technique has the better performance record?
FORECAST
Month Demand Technique 1 Technique 2
1           492           488                 495
2           470           484                 482
3           485           480                 478
4           493           490                 488
5           498           497                 492
6           492           493                 493

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