Two different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled water. Actual demand and the twosets of forecasts are as follows:TTTPREDICTED DEMANDPeriodDemandF1F216863667570673707570474696970736.726878070778.787484Click here for the Excel Data Filea. Compute MAD for each set of forecasts. Given your results, which forecast appears to be more accurate? (Round your answers to 2decimal places.)MAD F1MAD F2rON m574O N N NNN b. Compute the MSE for each set of forecasts. Given your results, which forecast appears to be more accurate? (Round your answersto 2 decimal places.)MSE F1MSE F2appears to be more accurate.c. In practice, either MAD or MSE would be employed to compute forecast errors. What factors might lead a manager to choose onerather than the other?Either one might already be in use, familiar to users, and have past values for comparison. Ifare used, MSE would be natural; ifare used, MAD woul

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Two different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are as follows: PREDICTED DEMAND Period Demand F1 F2 1 68 63 66 2 75 70 67 3 70 75 70 4 74 69 72 69 70 68 73 6. 72 75 80 70 77 8. 78 74 84 Click here for the Excel Data File a. Compute MAD for each set of forecasts. Given your results, which forecast appears to be more accurate? (Round your answers to 2 decimal places.) MAD F1 MAD F2

Two different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are as follows: PREDICTED DEMAND Period Demand F1 F2 1 68 63 66 2 75 70 67 3 70 75 70 4 74 69 72 69 70 68 73 6. 72 75 80 70 77 8. 78 74 84 Click here for the Excel Data File a. Compute MAD for each set of forecasts. Given your results, which forecast appears to be more accurate? (Round your answers to 2 decimal places.) MAD F1 MAD F2

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter8: Time Series Analysis And_forecasting

Section: Chapter Questions

Problem 2P: Refer to the time series data in Problem 1. Using the average of all the historical data as a...

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Consider the following time series data: Construct a time series plot. What type of pattern exists in the data? Develop a three-week moving average for this time series. Compute MSE and a forecast for week 8. Use α = 0.2 to compute the exponential smoothing values for the time series. Compute MSE and a forecast for week 8. Compare the three-week moving average forecast with the exponential smoothing forecast using α = 0.2. Which appears to provide the better forecast based on MSE? Use trial and error to find a value of the exponential smoothing coefficient α that results in a smaller MSE than what you calculated for α = 0.2.
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Weekly customer demand for the ice cream can be seen in the table below. Week Demand (gallons) 1 280 2 295 3 315 4 300 5 340 6 335 7 350 Compute a three-week moving average demand and a four-week moving average demand for weeks 5, 6, and 7. Compute the MAD for both forecasting methods. Which model is more accurate? Forecast week8 with the more accurate method
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