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Q. 1. Sales of vegetable dehydrators at Bud Baniss discount department store in St. Louis over the past year are shown below. Management prepared a forecast using a combination of exponential smoothing and its collective judgment for the 4 months (March, April, May and June of 2010):
Month2009-2010 Unit Sales Managements ForecastJuly100August93September96October110November124December119January92February83March101120April 96114May 89110June108108
a) Calculate MAD and MAPE for managements technique.
b) Do managements results outperform (i.e., have smaller MAD and MAPE than) a naive forecast?
c) Which forecast do you recommend, based on lower forecast error?
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