Suppose the actual and forecast sales are as shown in the table below. Answer th

Question

Suppose the actual and forecast sales are as shown in the table below. Answer the following questions using the given information. Work with the given numbers without converting them into thousands.

Yt ($000)

Ft ($000)

58

56.80

55

59.25

68

59.00

45

58.20

60

60.16

72

57.13

a. What is the mean absolute deviation (MAD) of this series? (Show the calculations).         

b.  What is the mean of the sum of squared errors (MSE) of this series? (Show the calculations).

Yt ($000)

Ft ($000)

58

56.80

55

59.25

68

59.00

45

58.20

60

60.16

72

57.13

Explanation / Answer

a) MAD = 7.11

b)MSE=82.65

Yt ($000) Ft ($000) |yt-ft| (yt-ft)^2 58 56.8 1.20 1.44 55 59.25 4.25 18.06 68 59 9.00 81.00 45 58.2 13.20 174.24 60 60.16 0.16 0.03 72 57.13 14.87 221.12 total 42.68 495.89 mean=total/6 7.11 82.65

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.