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1) Consider the forecasts shown below. Calculate MAD and MFE using the data for months January through June. Does the model over or under forecast? Comment on the importance of this.
Month
Actual Demand
Forecast
Forecast Error
Absolute Forecast Error
Jan
1040
1055
-15
15
Feb
990
1052
-62
62
Mar
980
900
80
Apr
1060
1025
35
May
1080
1100
-20
20
Jun
1000
1050
-50
50
Totals
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