Two independent methods of forecasting based on judgment and experience have been prepared each month for...

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Two independent methods of forecasting based on judgment andexperience 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 decimalplaces.)
MSE MAD
Forecast 1 ? ?
Forecast 2 ? ?

b. Compute MAPE for each forecast.(Round your intermediate calculations to 5 decimal placesand final answers to 4 decimal places.)
MAPE F1 ? %
MAPE F2 ? %
c. Prepare a naive forecast for periods 2through 11 using the given sales data. Compute each of thefollowing; (1) MSE, (2) MAD, (3) tracking signal at month 10, and(4) 2s control limits. (Round your answers to 2decimal places.)
MSE ?
MAD ?
Tracking signal ?
Control limits 0 ± ?

Answer & Explanation Solved by verified expert

3.5 Ratings (372 Votes)

a Compute the MSE and MAD for each forecast Round your answers to 2 decimal places Month Sales Forecast 1 Forecast 2 ErrorSeles Forecast 1 Absolute Error ErrorSeles Forecast 2 Absolute Error 1 845 815 820 30 30 25 25 2 835 835 825 0 0 10 10 3 795 820 825 25 25 30 30 4 820 830 795 10 10 25 25 5 795 785 780 10 10 15 15 6 835 785 771 50 50 64 64 7 805 810 785 5 5 20 20 8 850 780 785 70 70 65 65 9 840 805 830 35 35 10 10 10 805 815 825 10 10 20 20 MAD F1 245 MAD F2 284 Month Sales Forecast 1 Forecast 2 ErrorSeles Forecast 1 Absolute Error Squared Absolute Error ErrorSeles Forecast 2 Absolute Error Squared See Answer

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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


MAPE F1	? %
MAPE F2	? %