Question: 3. A manager has just received an evaluation from an analyst on two potential forecasting methods. The analyst is indifferent between the two methods, saying
3. A manager has just received an evaluation from an analyst on two potential forecasting methods. The analyst is indifferent between the two methods, saying that they should be equally accurate and in control. The demand and the forecasts using the two methods for nine periods follow: (Ch.3, prob.35)
| Period: | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
| Demand: | 37 | 39 | 37 | 39 | 45 | 49 | 47 | 49 | 51 |
| Method 1: | 36 | 38 | 40 | 42 | 46 | 46 | 46 | 48 | 52 |
| Method 2: | 36 | 37 | 38 | 38 | 41 | 52 | 47 | 48 | 52 |
-
Calculate the MSE for each method and compare the two methods.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
