Below is a table containing data on product demand for the most recent three months along with the forecasts that had been made for those three previous months. Calculate the MAE (or MAD). Month Demand Forecast 1 308 310 388 390 344 342 23

Below is a table containing data on product demand for the most recent three months along with the forecasts that had been made for those three previous months. Calculate the MAE (or MAD). Month Demand Forecast 1 308 310 388 390 344 342 23

Contemporary Marketing

18th Edition

ISBN:9780357033777

Author:Louis E. Boone, David L. Kurtz

Publisher:Louis E. Boone, David L. Kurtz

Chapter14: Pricing Strategies

Section14.2: Forecasting Demand

Problem 1LO

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Concept explainers

Forecasting in Business

Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the present. Forecasting plays a very important role in operational management as it helps in planning and decision-making. It is not only important for the success of a business but also contributes to individual growth and success. Many business organizations or companies have failed due to the shortcomings of their forecasting.

Question

Below is a table containing data on product demand for the most recent three months along with the
forecasts that had been made for those three previous months. Calculate the MAE (or MAD).
Month Demand Forecast
1
308
310
388
390
344
342

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Below is a table containing data on product demand for the most recent three months along with the forecasts that had been made for those three previous months. Calculate the MAPE. Month Demand Forecast 1 308 310 2 388 390 3 344 342