A company is comparing the accuracy of two forecasting methods. Forecasts using both methods are shown...

 

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A company is comparing the accuracy of two forecasting methods. Forecasts using both methods are shown below along with the actual values for January through May. The company also uses a tracking signal with +4 limits to decide when a forecast should be reviewed. Which forecasting method is best? Method A Method B Month Actual F'cast Error sales Cum. Tracking F'cast Signal Error Tracking Signal Cum. Error Error Jan. 30 28 2 2 27 2 1 1 3 0 3 1 29 3 Feb. 26 25 3 25 3 1.5 March 32 32 6 April 29 30 -1 2 27 8 4 May 31 1 3 29 2 30 3 10 MAD 2 MSE 1.4 4.4 A company is comparing the accuracy of two forecasting methods. Forecasts using both methods are shown below along with the actual values for January through May. The company also uses a tracking signal with +4 limits to decide when a forecast should be reviewed. Which forecasting method is best? Method A Method B Month Actual F'cast Error sales Cum. Tracking F'cast Signal Error Tracking Signal Cum. Error Error Jan. 30 28 2 2 27 2 1 1 3 0 3 1 29 3 Feb. 26 25 3 25 3 1.5 March 32 32 6 April 29 30 -1 2 27 8 4 May 31 1 3 29 2 30 3 10 MAD 2 MSE 1.4 4.4

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When comparing two forecasting methods the values of Mean Absolute Deviation MAD and Mean Squared Er... View the full answer