1) Consider the forecasts shown below. Calculate MAD and MFE using the data for months January through June. Does the model over or under forecast? Comment on the importance of this.
|
Month
|
Actual Demand
|
Forecast
|
Forecast Error
|
Absolute Forecast Error
|
|
Jan
|
1040
|
1055
|
-15
|
15
|
|
Feb
|
990
|
1052
|
-62
|
62
|
|
Mar
|
980
|
900
|
80
|
80
|
|
Apr
|
1060
|
1025
|
35
|
35
|
|
May
|
1080
|
1100
|
-20
|
20
|
|
Jun
|
1000
|
1050
|
-50
|
50
|
|
Totals
|
|
|
|
|