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 Sales Forecast 1 Forecast 21 770 771 7692 789 785 7873 794 790 7924 780 784 7985 768 770 7746 772 768 7707 760 761 7598 775 771 7759 786 784 78810 790 788 788a. Compute the MSE and MAD for each forecast. Does either forecast seem superior? Explain.b. Compute MAPE for each forecast.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.How do the naive results compare with the other two forecasts?
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 Sales Forecast 1 Forecast 21 770 771 7692 789 785 7873 794 790 7924 780 784 7985 768 770 7746 772 768 7707 760 761 7598 775 771 7759 786 784 78810 790 788 788a. Compute the MSE and MAD for each forecast. Does either forecast seem superior? Explain.b. Compute MAPE for each forecast.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.How do the naive results compare with the other two forecasts?
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
Month Sales Forecast 1 Forecast 2
1 770 771 769
2 789 785 787
3 794 790 792
4 780 784 798
5 768 770 774
6 772 768 770
7 760 761 759
8 775 771 775
9 786 784 788
10 790 788 788
a. Compute the MSE and MAD for each forecast. Does either forecast seem superior? Explain.
b. Compute MAPE for each forecast.
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.
How do the naive results compare with the other two forecasts?
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