A manager has just received an evaluation from an analyst on two potential forecasting alternatives.

The analyst is indifferent between the two alternatives, saying that they should be equally effective.

Period 1 2 3 4 5 6 7 8 9 10 Data 37 39 37 39 45 49 47 49 51 54 Alt. 1 36 38 40 42 46 46 46 48 52 55 Alt. 2 36 37 38 38 41 52 47 48 52 53

a. What would cause the analyst to reach this conclusion?

b. What information can you add to enhance the analysis?

Chapter Three Forecasting 135

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