Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The department manager using a combination of methods has forecast sales of toasters at a local department store. Calculate the MAD for the manager's forecast.

  1. The department manager using a combination of methods has forecast sales of toasters at a local department store. Calculate the MAD for the manager's forecast. Compare the manager's forecast against a fourth month weighted moving average forecast covering the same time period (5 last month, 3 second month, 2 third month and 1 fourth month). Which one is better? How is the forecast quality for both methods? Round each forecast to two decimal places.

Month

Unit Sales

Manager's Forecast

Fourth Month W.M.A.

January

52

February

61

52

March

73

65

April

79

73

May

66

76

June

51

66

July

47

53

August

44

47

September

30

34

October

55

40

November

74

55

December

125

84

January

125

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Authors: John J. Wild, Ken W. Shaw

2010 Edition

9789813155497, 73379581, 9813155493, 978-0073379586

Students also viewed these Accounting questions