Calculate mad mse and bias for the two methods

Reference no: EM131408701

ABC company is experimenting with two forecasting methods for its product. Table 2.20 gives the actual sales and the forecasts obtained by the two methods during the past 6 months.

(a) Calculate MAD, MSE, and BIAS for the two methods.

(b) Calculate and plot the tracking signals for the two methods.

(c) Are the methods under-forecasting or over-forecasting? Which method would you recommend for forecasting future sales and why?

Reference no: EM131408701

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