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If January sales for the fourth year is $295,000. It was originally forecasted to be $287,000. What is the forecast error? (I assumed it to
If January sales for the fourth year is $295,000. It was originally forecasted to be $287,000. What is the forecast error? (I assumed it to be $8,000 or 2.71%). If this error is large, the owner may be puzzled by the difference between the forecast and the actual sales value. What can you do to resolve her uncertainty about the forecasting procedure (used a dummy variable approach, in which, showed a linear trend and a seasonal pattern)?
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