Question: The Sun Devils Corporation is deciding which of two forecasting models to use. The forecasts for the two models and actual demand are provided below:
The Sun Devils Corporation is deciding which of two forecasting models to use. The forecasts for the two models and actual demand are provided below:
tableSALES,tableMODEL FORECASTtableMODEL FORECAST
Compute the MAD, MAPE, and RSFE for the two forecasting methods. Do not round intermediate calculations. Round your answers for the MAD and MAPE to two decimal places and for the RSFE to the nearest whole number. Use a minus sign to enter a negative value, if any.
What does the RSFE indicate?
Model tends to
forecasts demand.
Model tends to
forecasts demand.
Which forecast is better? Why?
Forecasting model is better because it provides a MAD, MAPE, and absolute value of RSFE.
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