Question: A manager has been using a certain technique to forecast demand for gallons of ice cream for the past six periods. Actual and forecasted amounts
A manager has been using a certain technique to forecast demand for gallons of ice cream for the past six periods. Actual and forecasted amounts are shown below.
| Period | Demand | Forecast |
| 1 | 85 | 75 |
| 2 | 96 | 100 |
| 3 | 102 | 105 |
| 4 | 85 | 87 |
| 5 | 74 | 68 |
| 6 | 69 | 65 |
1. What is the MAD for this forecasting technique?
| 4.83 | ||
| 4.95 | ||
| 4.85 | ||
| 5.05 | ||
| None of the other options are correct |
2. What is the MSE for this forecasting technique?
| 36.20 | ||
| 29.50 | ||
| None of the other options are correct | ||
| 35.55 | ||
| 40.75 |
3. What is the sigma (or standard deviation) for this forecasting technique?
| 6.017 | ||
| 3.087 | ||
| None of the other options are correct | ||
| 4.025 | ||
| 5.025 |
4. If the errors are assumed to be normally distributed with CL=0, LCL= -4.5 and UCL= +4.5, the errors
| None of the other options are correct | ||
| Period 1 and 5 | ||
| All periods are out of control | ||
| Period 2 and 3 | ||
| Period 1 and 4 |
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