Question a. To select a reliable forecast technique that you can use to predict the future sales of your bags based on past sales performances, you have considered two different forecasting techniques - Naïve forecast, and exponential smoothing forecast technique with a smoothing constant of 0.20. Now generate forecast results for all 5 months by using Naïve forecast, and exponential smoothing forecast technique with a smoothing constant of 0.20. b. Now use Mean absolute deviation (MAD) and Mean squared error (MSE), these forecast accuracy or error measurement tools, and determine which forecast technique between Naïve forecast, and exponential forecast techniques gives the lowest forecast error and highest forecast accuracy.

Question a. To select a reliable forecast technique that you can use to predict the future sales of your bags based on past sales performances, you have considered two different forecasting techniques - Naïve forecast, and exponential smoothing forecast technique with a smoothing constant of 0.20. Now generate forecast results for all 5 months by using Naïve forecast, and exponential smoothing forecast technique with a smoothing constant of 0.20. b. Now use Mean absolute deviation (MAD) and Mean squared error (MSE), these forecast accuracy or error measurement tools, and determine which forecast technique between Naïve forecast, and exponential forecast techniques gives the lowest forecast error and highest forecast accuracy.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.6: Moving Averages Models

Problem 22P: The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six...

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