ABC company is experimenting with two forecasting methods for its product. Table 2.20 gives the actual sales and the forecasts obtained by the two methods during the past 6 months.
(a) Calculate MAD, MSE, and BIAS for the two methods.
(b) Calculate and plot the tracking signals for the two methods.
(c) Are the methods under-forecasting or over-forecasting? Which method would you recommend for forecasting future sales and why?
