The manager of a large manufacturer of industrial pumps must choose between two alternative forecasting techniques. Both techniques have been used to prepare forecasts for a six month period. Using MAD as a criterion, which technique has the better performance record? Month Demand Technique1 Technique 2 1 492 488 495 2 470 484 482 3 485 480 478 4 493 490 488 5 498 497 492 6 492 493 493
The manager of a large manufacturer of industrial pumps must choose between two alternative forecasting techniques. Both techniques have been used to prepare forecasts for a six month period. Using MAD as a criterion, which technique has the better performance record? Month Demand Technique1 Technique 2 1 492 488 495 2 470 484 482 3 485 480 478 4 493 490 488 5 498 497 492 6 492 493 493
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section: Chapter Questions
Problem 34P: A small computer chip manufacturer wants to forecast monthly ozperating costs as a function of the...
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Question
The manager of a large manufacturer of industrial pumps must choose between two alternative
Month |
Demand |
Technique1 |
Technique 2 |
1 |
492 |
488 |
495 |
2 |
470 |
484 |
482 |
3 |
485 |
480 |
478 |
4 |
493 |
490 |
488 |
5 |
498 |
497 |
492 |
6 |
492 |
493 |
493 |
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