Question 551

Suppose Bill uses his own "Magic" Forecasting method. His forecast for April through August is shown below. Use this information to answer the next 3 questions.

MONTH	BILLS MAGIC FORECAST	ACTUAL DEMAND
April	150	225
May	220	255
June	215	205
July	245	215
August	205	165

What is the CFE for Bill's Magic Forecast from April through August? Pick the closest answer.

Group of answer choices

-50

-30

-10

10

30

50

Question 561

What is the MSE for Bills Magic Forecast? Pick the closest answer.

Group of answer choices

0

1000

2000

3000

4000

5000

6000

Question 571

Suppose underforecasting demand costs Bill $250 per unit, and overforecasting costs bill $100per unit. What is the cost of forecasting error for Bills Magic Forecast for April through August? Pick the closest answer.

Group of answer choices

0

5000

10000

15000

20000

25000

30000

35000

Question 581

Decreasing the alpha value in an exponential smoothing model (e.g., from 0.8 to 0.2) would always have what effect?

Group of answer choices

The forecast would decrease

The forecast would increase

The forecast will remain unchanged

The forecast will become more sensitive to sudden changes in demand

The forecast will become less sensitive to sudden changes in demand