A company has the following demand history for six months: Month Demand January February 214 226 March 232 April 228 May 220 June 230 The production planner decides two alternative methods to forecast the demand: Naive approach or 2-month moving average method. What is the absolute difference between the symmetric mean absolute percent errors (SMAPE) of these two methods? O a. 0.50 O b. 0.36 Oc. 1.38 Od. 1.20

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter7: Distance And Approximation
Section7.3: Least Squares Approximation
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A company has the following demand history for six months:
Month
Demand
January
214
February
226
March
232
April
228
May
220
June
230
The production planner decides two alternative methods to forecast the demand: Naive approach or 2-month moving
average method. What is the absolute difference between the symmetric mean absolute percent errors (SMAPE) of
these two methods?
a. 0.50
O b. 0.36
Oc. 1.38
Od. 1.20
Transcribed Image Text:A company has the following demand history for six months: Month Demand January 214 February 226 March 232 April 228 May 220 June 230 The production planner decides two alternative methods to forecast the demand: Naive approach or 2-month moving average method. What is the absolute difference between the symmetric mean absolute percent errors (SMAPE) of these two methods? a. 0.50 O b. 0.36 Oc. 1.38 Od. 1.20
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