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
845
815
820
2
835
835
825
3
795
820
825
4
820
830
795
5
795
785
780
6
835
785
771
7
805
810
785
8
850
780
785
9
840
805
830
10
805
815
825
a. Compute the MSE and MAD for each
forecast. (Round your answers to 2 decimal
places.)
MSE
MAD
Forecast 1
?
?
Forecast 2
?
?
b. Compute MAPE for each
forecast. (Round your intermediate calculations to 5
decimal places and final answers to 4 decimal
places.)
MAPE F1
? %
MAPE F2
? %
c. Prepare a naive forecast for periods 2
through 11 using the given sales data. Compute each of the
following; (1) MSE, (2) MAD, (3) tracking signal at month 10,
and (4) 2s control limits. (Round
your answers to 2 decimal places.)
MSE
?
MAD
?
Tracking signal
?
Control limits
0 ±
?