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Management at a motor parts distributor have been using a combination of combination of exponential smoothing and collective judgment to forecast monthly demand for a
Management at a motor parts distributor have been using a combination of combination of exponential smoothing and collective judgment to forecast monthly demand for a product over since March of 2007. At the beginning of July, they want to determine the quality of their forecasting method. The table below reports the recorded demands and the forecasted values for the months of March through August.
Month | Demand | Forecast |
---|---|---|
March | 97 | 83 |
April | 90 | 109 |
May | 86 | 96 |
June | 85 | 94 |
July | 83 | 95 |
August | 80 | 128 |
Compute the mean absolute deviation (MAD).
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