The Samuel Bridge Company wants to compare the accuracy of three methods that it has used to forecast yearly demand. Forecasts of yearly demand from 2018 through 2020 are shown below against the actual productions. Comment on their forecast accuracy by using MSE criterion. Actual Method A Method B Method C Demand forecasts forecasts forecasts Year (million) (million) (million) (million) 2018 11 8. 12 7 2019 12 10 13 2020 13 10 9. 12 Method A is the most accurate one with MSEA=9 O Method B is the most accurate one with MSEB=5 Method B is the most accurate one with MSEB=6 Method C is the most accurate one with MSEC=6 Method A is the most accurate one with MSEA=5
The Samuel Bridge Company wants to compare the accuracy of three methods that it has used to forecast yearly demand. Forecasts of yearly demand from 2018 through 2020 are shown below against the actual productions. Comment on their forecast accuracy by using MSE criterion. Actual Method A Method B Method C Demand forecasts forecasts forecasts Year (million) (million) (million) (million) 2018 11 8. 12 7 2019 12 10 13 2020 13 10 9. 12 Method A is the most accurate one with MSEA=9 O Method B is the most accurate one with MSEB=5 Method B is the most accurate one with MSEB=6 Method C is the most accurate one with MSEC=6 Method A is the most accurate one with MSEA=5
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.6: Moving Averages Models
Problem 20P: The file P13_20.xlsx contains the monthly sales of iPod cases at an electronics store for a two-year...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing