Sales of vegetable dehydrators at Bud Banis€™s discount department store in St. Louis over the past year are shown below. Management prepared a forecast using a combination of exponential smoothing and its collective judgment for the 4 months (March, April, May, and June of 2010):

(a) Compute MAD and MAPE for management€™s technique.
(b) Do management€™s results outperform (i.e., have smaller MAD and MAPE than) a naive forecast?
(c) Which forecast do you recommend, based on lower forecasterror?

Transcribed Image Text:

Month 2009-2010 Units Sales 100 93 96 110 124 119 92 83 Management's Forecast July August September October November December January February March April May 96 89 108 120 114 110 108 une