Problem 3-22 (Algo)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: Month12345678910Sales835845850820785840815840785800Forecast 1Forecast 2MAPE F1MAPE F2a. Compute the MSE and MAD for each forecast. (Roundyour answers to 2 decimal places.)Forecast 1835830840790815785770835805785MSEMADMSETracking signalControl limits782.501,125.60Forecast 2765830815830b. Compute MAPE for each forecast. (Round yourintermediate calculations to 5 decimal places and finalanswers to 4 decimal places.)3.0800 %6.0800 %800806775810815805MAD0 +c. Prepare a naive forecast for periods 2 through 11 usingthe given sales data. Compute each of the following; (1)MSE, (2) MAD, (3) tracking signal at month 10, and (4) 2scontrol limits. (Negative values should be indicated by aminus sign. Round your answers to 2 decimal places.)14.0013.72

Forecast for 10 months is provided using 2 methods:

Answered: Two independent methods of forecasting…

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:

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.3: Simple Regression Models

Problem 5P: Management of a home appliance store wants to understand the growth pattern of the monthly sales of...

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Question

Problem 3-22 (Algo) 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:

Month
1
2
3
4
5
6
7
8
9
10
Sales
835
845
850
820
785
840
815
840
785
800
Forecast 1
Forecast 2
MAPE F1
MAPE F2
a. Compute the MSE and MAD for each forecast. (Round
your answers to 2 decimal places.)
Forecast 1
835
830
840
790
815
785
770
835
805
785
MSE
MAD
MSE
Tracking signal
Control limits
782.50
1,125.60
Forecast 2
765
830
815
830
b. Compute MAPE for each forecast. (Round your
intermediate calculations to 5 decimal places and final
answers to 4 decimal places.)
3.0800 %
6.0800 %
800
806
775
810
815
805
MAD
0 +
c. Prepare a naive forecast for periods 2 through 11 using
the given sales data. Compute each of the following; (1)
MSE, (2) MAD, (3) tracking signal at month 10, and (4) 2s
control limits. (Negative values should be indicated by a
minus sign. Round your answers to 2 decimal places.)
14.00
13.72

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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