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
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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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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