BUAD 306 - Murphy Worksheet 5 - Accuracy Fall 2020 - Sections 11, 12, 80, 194 Due Mon, 10/5 at 11:15am EST Background: Wes and Steve are partners in a lunch truck company that operates a central kitchen and operates lunch trucks that travel to various locations in Philadelphia, Monday-Friday. The lunch trucks deliver pre-packaged healthy sandwich and salad alternatives, fresh fruit and pre-packaged low-fat desserts and canned beverages. Together, the partners have to make many decisions about how to structure the operational aspects of the business so that it is cost effective, efficient and profitable. Current Situation: Wes and Steve have prepared 4 different forecast techniques against historical data. The result of these efforts are shown in the table below. They want to know which approach is the most accurate and should be used going forward. FORECAST DATA 3P WMA 5PMA .6,.3,1 Period 3PMA EX SM.2 1 Actual 60 63 2 60.00 60.30 3 75 66.00 69.90 61.77 72 81 4 5 6 7 84 72.00 77.70 81.90 79 70.00 76.00 79.00 81.33 83.67 87.33 70.20 75.00 78.20 62.79 64.61 66.55 67.80 69.82 97.52 88 80.70 8 9 95 80.80 84.90 91.30 10 85.40 For Completion on Page 2: Calculate MAD and MSE for each technique and determine the best choice/why. BUAD 306 - Murphy Worksheet 5 - Accuracy Fall 2020 - Sections 11, 12, 80, 194 Due Mon, 10/5 at 11:15am EST Background: Wes and Steve are partners in a lunch truck company that operates a central kitchen and operates lunch trucks that travel to various locations in Philadelphia, Monday-Friday. The lunch trucks deliver pre-packaged healthy sandwich and salad alternatives, fresh fruit and pre-packaged low-fat desserts and canned beverages. Together, the partners have to make many decisions about how to structure the operational aspects of the business so that it is cost effective, efficient and profitable. Current Situation: Wes and Steve have prepared 4 different forecast techniques against historical data. The result of these efforts are shown in the table below. They want to know which approach is the most accurate and should be used going forward. FORECAST DATA 3P WMA 5PMA .6,.3,1 Period 3PMA EX SM.2 1 Actual 60 63 2 60.00 60.30 3 75 66.00 69.90 61.77 72 81 4 5 6 7 84 72.00 77.70 81.90 79 70.00 76.00 79.00 81.33 83.67 87.33 70.20 75.00 78.20 62.79 64.61 66.55 67.80 69.82 97.52 88 80.70 8 9 95 80.80 84.90 91.30 10 85.40 For Completion on Page 2: Calculate MAD and MSE for each technique and determine the best choice/why