Question
1) The department manager using a combination of methods has forecast sales of toasters at a local department store. Calculate the MAD for the manager's
1) The department manager using a combination of methods has forecast sales of toasters at a local department store. Calculate the MAD for the manager's forecast. Compare the manager's forecast against a fourth month weighted moving average forecast covering the same time period (5 last month, 3 second month, 2 third month and 1 fourth month). Which one is better? How is the forecast quality for both methods? Round each forecast to two decimal places. Make the process
Month | Unit Sales | Manager's Forecast | Fourth Month W.M.A. |
January | 52 |
|
|
February | 61 | 52 |
|
March | 73 | 65 |
|
April | 79 | 73 |
|
May | 66 | 76 |
|
June | 51 | 66 |
|
July | 47 | 53 |
|
August | 44 | 47 |
|
September | 30 | 34 |
|
October | 55 | 40 |
|
November | 74 | 55 |
|
December | 125 | 84 |
|
January |
| 125 |
|
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