Two independent methods of forecasting based on judgment andexperience have been prepared each month for the past 10 months.The forecasts and actual sales are as follows:
| Month | Sales | Forecast 1 | Forecast 2 |
| 1 | 845 | 815 | 820 |
| 2 | 835 | 835 | 825 |
| 3 | 795 | 820 | 825 |
| 4 | 820 | 830 | 795 |
| 5 | 795 | 785 | 780 |
| 6 | 835 | 785 | 771 |
| 7 | 805 | 810 | 785 |
| 8 | 850 | 780 | 785 |
| 9 | 840 | 805 | 830 |
| 10 | 805 | 815 | 825 |
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a. Compute the MSE and MAD for each forecast.(Round your answers to 2 decimalplaces.)
| MSE | MAD |
| Forecast 1 | ? | ? |
| Forecast 2 | ? | ? |
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b. Compute MAPE for each forecast.(Round your intermediate calculations to 5 decimal placesand final answers to 4 decimal places.)
| |
| MAPE F1 | Â Â ? Â Â % |
| MAPE F2 | ? Â Â % |
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c. Prepare a naive forecast for periods 2through 11 using the given sales data. Compute each of thefollowing; (1) MSE, (2) MAD, (3) tracking signal at month 10, and(4) 2s control limits. (Round your answers to 2decimal places.)
| |
| MSE | ? |
| MAD | ? |
| Tracking signal | ? |
| Control limits | 0 ± ? |
