Answered: Two different forecasting techniques…

Two different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are as follows:

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

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 as follows:

Problem 3-21 (Algo)
Two different forecasting techniques (F1 and F2) were
used to forecast demand for cases of bottled water. Actual
demand and the two sets of forecasts are as follows:
Period
12345678
PREDICTED DEMAND
Demand
68 75 70 74 69 72 80 78
264 62 70 73 76 79 79 80
57 73 77
F1
62
66
71
67
73
67
F2

b. Compute the MSE for each set of forecasts. Given your
results, which forecast appears to be more accurate?
(Round your answers to 2 decimal places.)
F1
MSE F1
MSE F2
appears to be more accurate.

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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