1. Discuss why forecasting is important to an organization including a brief discussion of the six steps that an organization should follow when developing its forecasting model.
2. What role does MAD play in evaluating a forecasting model?
3. List and describe at least two time series models giving an example of the type of business that might find each of the models you discuss beneficial.
4. Describe how you would develop a pro forma income statement (Table 6-7 in your textbook).
5. What role does the pro forma balance sheet play in financial forecasting?
6. Why is it important to have a budget to use as both a monitoring and control tool?
7. Moving Average ForecastUsing the data in the table below, calculate a three-month moving average forecast for month 12.