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Operations management: Determine forecast errors, ME, MAD, MSE, and MAPE
Two forecasting methods have been used to forecast the demand for a product. The following table shows the actual demand and the two forecasts for the product based on the two methods:
Forecasted Demand Based on:PeriodActualDemand Forecast Method 1 Forecast Method 21 68 66 662 75 68 683 70 72 704 74 71 725 69 72 746 72 70 767 80 71 788 78 74 80
A. Determine the following measures of error for each forecast method: ME, MAD, MSE, and MAPE. Fill the table on the answer sheet set.
B. Based on your answers to Part A, discuss the results AND determine which forecasting method is superior. Write your answer in the space provided in the answer-sheet set. Do NOT exceed 5 lines of answer and do not extend the box.
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