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The Sun Devils Corporation is deciding which of two forecasting models to use. The forecasts...

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Accounting

The Sun Devils Corporation is deciding which of two forecasting models to use. The forecasts for the two models and actual demand are provided below:

MODEL 1 MODEL 2
MONTH SALES FORECAST FORECAST
1 175 150 180
2 200 220 220
3 185 185 180
4 170 190 195
5 155 130 135
6 170 155 165
7 150 140 160
8 165 175 170
9 175 195 160
10 165 140 165

Compute the MAD, MAPE, and RSFE for the two forecasting methods. Do not round intermediate calculations. Round your answers for the MAD and MAPE to two decimal places and for the RSFE to the nearest whole number. Use a minus sign to enter a negative value, if any.

Accuracy measure Model 1 Model 2
MAD
MAPE % %
RSFE

What does the RSFE indicate?

Model 1 tends to -Select-underoverItem 7 forecasts demand.

Model 2 tends to -Select-underoverItem 8 forecasts demand.

Which forecast is better? Why?

-Select-Forecasting model 1Forecasting model 2Item 9 is better because it provides a -Select-lowerlargerItem 10 MAD, MAPE, and absolute value of RSFE.

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