Question
A relatively young trampoline park company named Wiggles Out has studied market demand within a large city and surrounding area for years. It has recently
A relatively young trampoline park company named Wiggles Out has studied market demand within a large city and surrounding area for years. It has recently opened a location between the city and a large suburb with a substantial young family population. The coowners of Wiggles Out have contracted a business demand forecast expert to help them with the forecasting to better prepare for crowd fluctuations. This expert includes variables such as weather, advertising, and school sessions to create her forecasts. The table below compares the co-owner's and expert's forecasts for the next four weeks. Co-Owners' Forecast Expert's Forecast True Demand Week 1 370 260 245 Week 2 270 275 260 Week 3 250 330 375 Week 4 390 380 400 a) What is the co-owners forecast error on average? (5 points) b) What is the expert's forecast error on average? (5 points) c) Based on the forecast error averages above, what can we determine? (3 points) d) To better understand whose forecast is more accurate, the co-owners decide to analyze forecast errors during the four weeks. What is the mean absolute deviation, or MAD, of the co-owners four-week forecast? (5 points) e) What is the mean absolute deviation, or MAD, of the expert's four-week forecast? (5 points) f) Based on the MAD data for the co-owners and the expert, who better forecasts the number of jumpers per week?
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