Discuss the below:
Q: A manager has been using a certain technique to forecast demand for gallons of ice cream for the past six periods. Actual and predicted amounts are shown below. Would a naive forecast have produced better results? Show all your work and calculations.
|
Period
|
Demand
|
Forecast
|
|
1
|
80
|
75
|
|
2
|
75
|
78
|
|
3
|
81
|
77
|
|
4
|
82
|
79
|
|
5
|
85
|
80
|
|
6
|
78
|
82
|