Exercise # 2 Calculating MAD_t, Revised MAD_t,Error,and the Revised Error :Has the Forecast Improved ? How much has it improved in % terms ?

Franklin Henry forecasts demand for an auditing and accounting services group, for an estate planning group, and a business consulting group. His group forecasts for the preceding six-month(M) period, which were made six months prior to that time, are each based on a level, pattern less projection. The following data table shows these forecasts(F) and the actual demand (AD) for each group:

Estate Planning Auditing and Accounting Business Consulting

(Client days) (Client days) (Client days)

M AD F M AD F M AD F

1 120 130 1 260 230 1 120 120

2 80 130 2 240 230 2 140 120

3 100 130 3 270 230 3 170 120

4 120 130 4 320 230 4 190 120

5 125 130 5 290 230 5 230 120

6 110 130 6 200 230 6 210 120

Calculate the Forecast error (FE), MAD, Revised Forecast, Revised Error and Revised MAD. Has the FE improved(decreased)? What is the % improvement for each forecast?

*To the helper: Please do the problem on a paper. Show it with Paper and pencil. do it clearly.