Ed Rogers owns an appliance store. Sales data on a particular model of a DVD player for the past six months are shown below, along with the results of two different forecasting models: Month Sales Forecast 1 Forecast 2 Jan 35 30 33 Feb 29 28 32 Mar 39 43 35 Apr 42 40 45 May 51 48 52 Jun 56 55 52 Which is the better forecasting model, based on the MAD criterion?
Ed Rogers owns an appliance store. Sales data on a particular model of a DVD player for the past six months are shown below, along with the results of two different forecasting models: Month Sales Forecast 1 Forecast 2 Jan 35 30 33 Feb 29 28 32 Mar 39 43 35 Apr 42 40 45 May 51 48 52 Jun 56 55 52 Which is the better forecasting model, based on the MAD criterion?
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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Question
Ed Rogers owns an appliance store. Sales data on a particular model of a DVD player for the past six months are shown below, along with the results of two different
|
Month |
Sales |
Forecast 1 |
Forecast 2 |
|
Jan |
35 |
30 |
33 |
|
Feb |
29 |
28 |
32 |
|
Mar |
39 |
43 |
35 |
|
Apr |
42 |
40 |
45 |
|
May |
51 |
48 |
52 |
|
Jun |
56 |
55 |
52 |
Which is the better forecasting model, based on the MAD criterion?
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