Harlen Industries has a simple forecasting model: Take the actual demand for the
ID: 418995 • Letter: H
Question
Harlen Industries has a simple forecasting model: Take the actual demand for the same month last year and divide that by the number of fractional weeks in that month. This gives the average weekly demand for that month. This weekly average is used as the weekly forecast for the same month this year. This technique was used to forecast eight weeks for this year, which are shown below along with the actual demand that occurred.
The following eight weeks show the forecast (based on last year) and the demand that actually occurred:
WEEK
FORECAST
DEMAND
ACTUAL
DEMAND
1
130
127
2
132
123
3
140
145
4
140
155
5
130
175
6
140
165
7
155
180
8
165
200
What is the MAD of forecast errors. (Round your answers to 2 decimal places.)
WEEK
FORECAST
DEMAND
ACTUAL
DEMAND
1
130
127
2
132
123
3
140
145
4
140
155
5
130
175
6
140
165
7
155
180
8
165
200
Explanation / Answer
MAD (Mean Absolute Deviation) = |3 + 9 + 5 + 15 + 45 + 25 + 25 + 35|/8
= 162/8
= 20.25
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.