Two independent methods of forecasting based on judgment and experience have beenprepared each month for the past 10 months. The forecasts and actual sales are as follows:MonthSalesForecast 1Forecast 217707717692789785787379479079247807847985768770774677276877077607617598775771775978678478810790788788(a). Compute the MSE and MAD for each forecast. Does either forecast seem superior?Explain.(b). Compute MAPE for each forecast.

*Answer: Given data Month Sales Forecast1 Forecast 2 1 770 771 769 2 789 785 787 3…

anth Sales Forecast 1 Forecast 2 1 770 771 769 2 789 785 787 3 794 790 792 780 784 798 768 770 774 772 768 770 7 760 761 759 775 771 775 786 784 788 790 788 788 Compute the MSE and MAD for each forecast. Does either forecast seem superior? Explain. - Compute MAPE for each forecast.

anth Sales Forecast 1 Forecast 2 1 770 771 769 2 789 785 787 3 794 790 792 780 784 798 768 770 774 772 768 770 7 760 761 759 775 771 775 786 784 788 790 788 788 Compute the MSE and MAD for each forecast. Does either forecast seem superior? Explain. - Compute MAPE for each forecast.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 2.1CE

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Question

Two independent methods of forecasting based on judgment and experience have been
prepared each month for the past 10 months. The forecasts and actual sales are as follows:
Month
Sales
Forecast 1
Forecast 2
1
770
771
769
2
789
785
787
3
794
790
792
4
780
784
798
5
768
770
774
6
772
768
770
7
760
761
759
8
775
771
775
9
786
784
788
10
790
788
788
(a). Compute the MSE and MAD for each forecast. Does either forecast seem superior?
Explain.
(b). Compute MAPE for each forecast.

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