A manager has been using a certain technique (Forecast 1) to forecast demand for gallons of ice cream for the past 3 periods The manager is thinking of using Forecast 2 instead of Forecast 1 in the future Calculate and state the MAD for each forecast and based on the MAD calculations, should the manager use Forecast 1 or Forecast 2 and state the proper reasoning Note MAD mean absolute deviation Select the correct answer Period Actual Forecast 1 Forecast 2 1 90 99 100 2 100 85 80 3 91 87 99 MAD of Forecast 1 is 107 33 MAD of Forecast 2 is 188 Since the MAD of Forecast 1 is less than the MAD for Forecast 2, Forecast 1 is the best and most accurate forecast to use MAD of Forecast 1 is 18 33 MAD of Forecast 2 is 12 67 Since the MAD of Forecast 2 is less than the MAD for Forecast 1, Forecast 2 is the best and most accurate forecast to use MAD of Forecast 1 is 9 33 MAD of Forecast 2 is 12 67 Since the MAD of Forecast 1 is less than the MAD for Forecast 2, Forecast 2 is the best and most accurate forecast to use MAD of Forecast 1 is 9 33 MAD of Forecast 2 is 12 67 Since the MAD of Forecast 1 is less than the MAD for Forecast 2, Forecast 1 is the best and most accurate forecast to use

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Question: A manager has been using a certain technique (Forecast 1) to forecast demand for gallons of ice cream for the past 3 periods. The manager

A manager has been using a certain technique (Forecast 1) to forecast demand for gallons of ice cream for the past 3 periods. The manager is thinking of using Forecast 2 instead of Forecast 1 in the future. Calculate and state the MAD for each forecast and based on the MAD calculations, should the manager use Forecast 1 or Forecast 2 and state the proper reasoning? Note: MAD = mean absolute deviation. Select the correct answer.

Period	Actual	Forecast 1	Forecast 2
1	90	99	100
2	100	85	80
3	91	87	99

		MAD of Forecast 1 is 107.33; MAD of Forecast 2 is 188; Since the MAD of Forecast 1 is less than the MAD for Forecast 2, Forecast 1 is the best and most accurate forecast to use.
		MAD of Forecast 1 is 18.33; MAD of Forecast 2 is 12.67; Since the MAD of Forecast 2 is less than the MAD for Forecast 1, Forecast 2 is the best and most accurate forecast to use.
		MAD of Forecast 1 is 9.33; MAD of Forecast 2 is 12.67; Since the MAD of Forecast 1 is less than the MAD for Forecast 2, Forecast 2 is the best and most accurate forecast to use.
		MAD of Forecast 1 is 9.33; MAD of Forecast 2 is 12.67; Since the MAD of Forecast 1 is less than the MAD for Forecast 2, Forecast 1 is the best and most accurate forecast to use.

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