Question: A simple forecasting method for weekly sales of flash drives used by a local computer dealer is to form the average of the two most
A simple forecasting method for weekly sales of flash drives used by a local computer dealer is to
form the average of the two most recent sales figures. Suppose sales for the drives for the past
weeks were
a Determine the onestepahead forecasts made for periods through using this method.
b Determine the forecast errors for these periods.
c Compute the MAD, and the MSE based on the forecast errors computed in part b
To get the method started, use the forecast for week that you calculated in part a
c Based on MAD, which method performed better?
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