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Business
Operations Management
Month SALES (ACTUAL) 1 780 2 789 FORECAST I FORECAST II 772 783 785 788 3 794 790 792 + 780 784 786 5 776 770 774 a 7 772 768 770 765 761 759 8 775 771 775 ° 786 784 783 10 790 792 788

Month SALES (ACTUAL) 1 780 2 789 FORECAST I FORECAST II 772 783 785 788 3 794 790 792 + 780 784 786 5 776 770 774 a 7 772 768 770 765 761 759 8 775 771 775 ° 786 784 783 10 790 792 788

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter7: Nonlinear Optimization Models
Section: Chapter Questions
Problem 56P
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Two independent methods of forecasting based on judgment and experience have been prepared each month for the past 10 months.  The forecasts and actual sales are in the attached screenshot. Required: Compute the MAD and MSE for each forecast. Does either forecast seem superior? Explain. 

 

Month SALES (ACTUAL) 1 780 2 789 FORECAST I FORECAST II 772 783 785 788 3 794 790 792 + 780 784 786 5 776 770 774 a 7 772 768 770 765 761 759 8 775 771 775 ° 786 784 783 10 790 792 788
Transcribed Image Text:Month SALES (ACTUAL) 1 780 2 789 FORECAST I FORECAST II 772 783 785 788 3 794 790 792 + 780 784 786 5 776 770 774 a 7 772 768 770 765 761 759 8 775 771 775 ° 786 784 783 10 790 792 788
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Practical Management Science
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ISBN:
9781337406659
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