Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sales of quilt covers at Bud Banis's discount department store in Carbondale over the past year are shown below. Management prepared a forecast using a

image text in transcribed
Sales of quilt covers at Bud Banis's discount department store in Carbondale over the past year are shown below. Management prepared a forecast using a combination of exponential smoothing and its collective judgment for the 4 months (March, April, May, and June): Month Aug Sep Nov Dec Feb Mar Apr May Jun Unit Sales 100 120 118 92 102 8 2 Management's Forecast 1 I 125 a) MAD for the forecast developed by the management's technique = sales (round your response to two decimal places). MAPE for the forecast developed by the management's technique = % (round your response to two decimal places). b) Using the Naive Method, the forecast for period March through June is (round your response to two decimal places): Month Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 110 Unit Sales 100 118 102 Naive Forecast MAD for the naive forecast = sales (round your response to two decimal places). MAPE for the forecast developed by the naive approach = % (round your response to two decimal places). c) When comparing MAD for the two approaches, the better forecast is achieved using the When comparing MAPE for the two approaches, the better forecast is achieved using the

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting The Cornerstone Of Business Decision Making

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

8th Edition

0357715349, 978-0357715345

More Books

Students also viewed these Accounting questions