Mean absolute percentage deviation

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Reference no: EM132741809

After tallying the receipts for their first year of operation, the owners of the Taco Barn are encouraged. Sales of their artisanal tacos, made from such exotic ingredients as ground beef, cheese, and beans, have been strong and seem to give hope to the coming year. Taco sales by month are shown in the table.

Month Sales
January 474
February 485
March 501
April 588
May 579
June 673
July 594
August 679
September 608
October 699
November 732
December 732

Armed only with his fingers, the owner decides that the safest forecasting approach is a weighted moving average using 0.8, and 0.2 for the most recent two. Generate a forecast for the year using this technique and then calculate forecast errors using MAPD. What is the mean absolute percentage deviation for this forecasting approach?

Reference no: EM132741809

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