Exercise # 2 –Calculating MADt, Revised MADt,Error,and the Revised Error :Has the Forecast Improved ? How much has it improved in % terms ? Franklin Henry forecasts demand for an auditing and accounting services group, for an estate planning group ,and a business consulting group.His group forecasts for the preceding six-month(M) period, which were made six months prior to that time, are each based on a level, patternless projection.The following data table shows these forecasts(F) and the actual demand (AD) for each group : Estate Planning Auditing and Accounting Business Consulting (Client –days) (Client –days) (Client –days) M AD F M AD F M AD F 1 120 130 1 260 230 1 120 120 2 80 130 2 240 230 2 140 120 3 100 130 3 270 230 3 170 120 4 120 130 4 320 230 4 190 120 5 125 130 5 290 230 5 230 120 6 110 130 6 200 230 6 210 120 Calculate the Forecast error(FE),MAD, Revised Forecast, Revised Error,and Revised MAD.Has the FE improved(decreased) ? What is the % improvement for each forecast ?
Exercise # 2 –Calculating MADt, Revised MADt,Error,and the Revised Error :Has the
Franklin Henry forecasts demand for an auditing and accounting services group, for an estate planning group ,and a business consulting group.His group forecasts for the preceding six-month(M) period, which were made six months prior to that time, are each based on a level, patternless projection.The following data table shows these forecasts(F) and the actual demand (AD) for each group :
Estate Planning Auditing and Accounting Business Consulting
(Client –days) (Client –days) (Client –days)
M AD F M AD F M AD F
1 120 130 1 260 230 1 120 120
2 80 130 2 240 230 2 140 120
3 100 130 3 270 230 3 170 120
4 120 130 4 320 230 4 190 120
5 125 130 5 290 230 5 230 120
6 110 130 6 200 230 6 210 120
Calculate the Forecast error(FE),MAD, Revised Forecast, Revised Error,and Revised MAD.Has the FE improved(decreased) ? What is the % improvement for each forecast ?
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