Two independent methods of forecasting based on judgment and experience have been prepared each month for the past 5 months. The forecasts and actual sales are as follows: Month 1 2 3 4 5 6 sales 77 75 78 76 74 71 Forecast1 75 72 81 75 75 73 Forecast2 70 73 79 74 75 72 a. Compute the MAD, MSE and MAPE for each forecast. Does either forecast seem to be superior? Explain. (Round off your numbers to two decimal places, e.g., 2.674 → 2.67) b. Compute 2s control limits for each forecast and draw a control chart. Are the forecast errors with in control limits? Round off your numbers to two decimal places.
Two independent methods of forecasting based on judgment and experience have been prepared each month for the past 5 months. The forecasts and actual sales are as follows: Month 1 2 3 4 5 6 sales 77 75 78 76 74 71 Forecast1 75 72 81 75 75 73 Forecast2 70 73 79 74 75 72 a. Compute the MAD, MSE and MAPE for each forecast. Does either forecast seem to be superior? Explain. (Round off your numbers to two decimal places, e.g., 2.674 → 2.67) b. Compute 2s control limits for each forecast and draw a control chart. Are the forecast errors with in control limits? Round off your numbers to two decimal places.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.7: Exponential Smoothing Models
Problem 27P: The file P13_27.xlsx contains yearly data on the proportion of Americans under the age of 18 living...
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