The forecasts generated by two forecasting methods and actual sales have been collected in the Microsoft Excel Online file below. Use the Microsoft Excel Online file below to develop forecast accuracy and answer the following question. Forecast Accuracy Measures Forecast 1 PeriodSalesForecastErrorAbsolute ErrorError^2Abs. % Error1271276 2285263 3290286 4276288 5266269 6268267 7265261 8270268 Total Average RSFEMADMSEMAPE Tracking Signal 1. What is the MAD, the MSE, the MAPE, the RSFE, and the tracking signal for each forecasting method? Do not round intermediate calculations. Round your answers to two decimal places. Use the minus sign to enter negative values, if any.2. What can be concluded about the quality of the forecasts 1? Assume that the control limit for the tracking signal is ±3. The results indicate (bias or no bias) in the forecasts 1, and that the tracking signal (is not or is) within the control limits of ±3.

Forecasting includes making expectations about what's to come. In finance, forecasting is utilized…

Answered: The forecasts generated by two…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.7: Exponential Smoothing Models

Problem 29P: The file P13_29.xlsx contains monthly time series data for total U.S. retail sales of building...

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The forecasts generated by two forecasting methods and actual sales have been collected in the Microsoft Excel Online file below. Use the Microsoft Excel Online file below to develop forecast accuracy and answer the following question.

Forecast Accuracy Measures
Forecast 1
Period	Sales	Forecast	Error	Absolute Error	Error^2	Abs. % Error
1	271	276
2	285	263
3	290	286
4	276	288
5	266	269
6	268	267
7	265	261
8	270	268

Total

Average
			RSFE	MAD	MSE	MAPE

				Tracking Signal

1. What is the MAD, the MSE, the MAPE, the RSFE, and the tracking signal for each forecasting method? Do not round intermediate calculations. Round your answers to two decimal places. Use the minus sign to enter negative values, if any.

2. What can be concluded about the quality of the forecasts 1? Assume that the control limit for the tracking signal is ±3. The results indicate (bias or no bias) in the forecasts 1, and that the tracking signal (is not or is) within the control limits of ±3.

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