A company has developed a forecast using the Delphi method for January through June 1. Using...

A company has developed a forecast using the Delphi method for January through June

1. Using the data provided, what is the Mean Absolute Deviation for the forecast method?

2. Using the data provided, what is the MAPD?

Month	Demand	Forecast
January	232	234
February	225	222
March	239	240
April	260	261
May	234	231
June	260	262

Solutions

Expert Solution

Let's do calculation in excel:

Error = Actual value - Forecast value

1. Using the data provided, what is the Mean Absolute Deviation(MAD) for the forecast method?

MAD is the average of absolute error

So from the above output , MAD = 2

2. Using the data provided, what is the MAPD?

MAPD is the average of relative absolute errors ( |error| / actual *100 )

So from the above output , MAPD = 0.84%.

The formulae used on the above excel-sheet are as follows:

milcah answered 8 months ago

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