Question
1. Toyota Motors introduced a hybrid car Hybrid G in the U.S. market in 2014. In the first three years, the sales of the Hybrid
1.
Toyota Motors introduced a hybrid car Hybrid G in the U.S. market in 2014. In the first three years, the sales of the Hybrid G were strong, but the sales figures started to decline in 2017 following the introduction of a new hybrid model by Honda. Toyota is in critical need of a better forecasting method. They need your help to evaluate alternative forecasting methods and provide suggestions. The following table contains the past 6 months of sales data.
Note: Month 1 refers to sales made 6 months ago, month 6 refers to sales made last month.
Month | Sales / Demand |
1 | 1443 |
2 | 1358 |
3 | 1342 |
4 | 1298 |
5 | 1277 |
6 | 1183 |
Use a 2-month simple moving average to forecast sales for months 3 to 7.
The forecast sales for month 3 (F3) is .
The forecast sales for month 4 (F4) is .
The forecast sales for month 5 (F5) is .
The forecast sales for month 6 (F6) is .
The forecast sales for month 7 (F7) is .
Compute the forecast errors for months 3 to 6, and the corresponding Mean Absolute Deviation (MAD) and the Mean Squared Error (MSE) for those months.
The MAD of forecast errors for months 3 to 6 is .
The MSE of forecast errors for months 3 to 6 is
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