Question: Forecast Quality The table below displays demand for a particular product for the months of June, July, and August. Alongside this time series are two

Forecast Quality The table below displays demand for a particular product for the months of June, July, and August. Alongside this time series are two forecasts. The bottom row of the table displays the averages of the figures in the respective columns.

Month Demand Forecast 1 Forecast 2

June 30 32 35

July 40 38 35

August 35 37 33

Average 35 35.67 34.33

Management has noted that, on average, Forecast 1 is 0.67 units above average demand and Forecast 2 is 0.67 units below average demandso both forecasts perform comparably and it doesnt matter which method is used going forward. Is managements assessment correct? Why or why not? If no, then provide a more accurate evaluation of the forecasting methods.

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