Concept explainers
a)
To determine: A 3-month moving average
a)
Explanation of Solution
Given information:
Determine a 3-month moving average forecast for April through January:
Formulae to determine the value in the above table:
b)
To determine: A 5-month moving average forecast for June through January.
b)
Explanation of Solution
Given information:
Determine a 5-month moving average forecast for June through January:
Formulae to determine the value in the above table:
c)
To determine: The two forecasts using MAD.
c)
Explanation of Solution
Given information:
Compare two forecasts using MAD:
Formulae to determine the value in the above table:
According to the findings, the dealer should use 3-month forecasts, which has smaller MAD that indicates accurate forecast.
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Chapter 15 Solutions
Introduction To Management Science, Global Edition
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