Sales of quilt covers at Bud Banis\'s discount department store in Carbondale ov

Question

Sales of quilt covers at Bud Banis's discount department store in Carbondale over the past year are shown below. Management prepared a forecast using a combination of exponential smoothing and its collective judgment for the 4 months (March, April, May, and June): MAD for the forecast developed by the management's technique = 16.5 sales (round your response to two decimal places). MAPE for the forecast developed by the management's technique = 17.42 % (round your response to two decimal places). Using the Naive Method, the forecast for the period March through June is (round your response to two decimal places): MAD for the native forecast = 12.75 sales (round your response to two decimal places). MAPE for the forecast developed by the native approach = % (round your response to two decimal places).

Explanation / Answer

The Mean Absolute Percent Error, MAPE is calculated as follows:

MAPE: [1/n {sigma |actual-forecast|/actual}]*100

Substituting the given values,

Month Actual Forecast Absolute Percentage Error March 102 85 11.04 April 94 102 8.51 May 89 94 5.62 June 110 89 19.09 MAPE:11.07% (ans)

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