In: Advanced Math
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 2 |
1 | 845 | 815 | 820 |
2 | 835 | 835 | 825 |
3 | 795 | 820 | 825 |
4 | 820 | 830 | 795 |
5 | 795 | 785 | 780 |
6 | 835 | 785 | 771 |
7 | 805 | 810 | 785 |
8 | 850 | 780 | 785 |
9 | 840 | 805 | 830 |
10 | 805 | 815 | 825 |
a. Compute the MSE and MAD for each forecast.
(Round your answers to 2 decimal
places.)
MSE | MAD | |
Forecast 1 | ? | ? |
Forecast 2 | ? | ? |
b. Compute MAPE for each forecast.
(Round your intermediate calculations to 5 decimal places
and final answers to 4 decimal places.)
MAPE F1 | ? % |
MAPE F2 | ? % |
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. (Round your answers to 2
decimal places.)
MSE | ? |
MAD | ? |
Tracking signal | ? |
Control limits | 0 ± ? |