2. The department manager using a combination of methods has forecast sales of toasters at a local department store. Calculate the MAD for the manager's forecast. Compare the manager's forecast against a naive forecast covering the same time period. Which is better?

2. The department manager using a combination of methods has forecast sales of toasters at a local department store. Calculate the MAD for the manager's forecast. Compare the manager's forecast against a naive forecast covering the same time period. Which is better?

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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Question

Can you assist me with problem 20. Please show the process in order to make it easier to follow along. Thank you

2. The department manager using a combination of
methods has forecast sales of toasters at a local
department store. Calculate the MAD for the
manager's forecast. Compare the manager's forecast
against a naive forecast covering the same time
period. Which is better?
Manager's
Month
Unit Sales
Forecast
January
52
February
61
March
73
April
79
May
66
June
51
July
47
50
August
44
55
September
30
52
October
55
42
November
74
60
December
125
75

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