Two forecasting models were used to predict the future value of a time series. These are shown in the accompanying table, together with the actual values. Forecast Value Ft Model 1 Model 2 Actual Yt 7.5 6.3 6 6.3 6.7 6.6 5.4 7.1 7.3 8.2 7.5 9.4 Compute MAD and MPE for each model and determine which was more accurate.
Two forecasting models were used to predict the future value of a time series. These are shown in the accompanying table, together with the actual values. Forecast Value Ft Model 1 Model 2 Actual Yt 7.5 6.3 6 6.3 6.7 6.6 5.4 7.1 7.3 8.2 7.5 9.4 Compute MAD and MPE for each model and determine which was more accurate.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.6: Moving Averages Models
Problem 22P: The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six...
Related questions
Question
Two
|
Forecast Value Ft |
||||
Model 1 |
Model 2 |
Actual Yt |
|
||
7.5 |
6.3 |
6 |
|
||
6.3 |
6.7 |
6.6 |
|
||
5.4 |
7.1 |
7.3 |
|
||
8.2 |
7.5 |
9.4 |
|
||
Compute MAD and MPE for each model and determine which was more accurate.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing