Following are two weekly forecasts made by two different methods for the number of gallons of gasoline, in thousands, demanded at a local gasoline station. Also shown are actual demand levels, in thousands of gallons: WeekForecast Method 1ActualDemand10.950.7221.080.9830.921.0741.171.04 WeekForecast Method 2ActualDemand10.800.7221.210.9830.881.0741.171.04Part 2The MAD for Method 1 =enter your response herethousand gallons (round your response to three decimal places).

Forecasting is a technique used to predict future outcomes on the basis of past data. In business…

Answered: The MAD for Method 1 = enter your…

Business

Operations Management

The MAD for Method 1 = enter your response here thousand gallons (round your response to three decimal places).

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 19P: The file P13_19.xlsx contains the weekly sales of a particular brand of paper towels at a...

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Concept explainers

Forecasting in Business

Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the present. Forecasting plays a very important role in operational management as it helps in planning and decision-making. It is not only important for the success of a business but also contributes to individual growth and success. Many business organizations or companies have failed due to the shortcomings of their forecasting.

Question

Following are two weekly forecasts made by two different methods for the number of gallons of gasoline, in thousands, demanded at a local gasoline station. Also shown are actual demand levels, in thousands of gallons:

Week	Forecast Method 1	Actual Demand
1	0.95	0.72
2	1.08	0.98
3	0.92	1.07
4	1.17	1.04

Week	Forecast Method 2	Actual Demand
1	0.80	0.72
2	1.21	0.98
3	0.88	1.07
4	1.17	1.04

Part 2

The MAD for Method 1 =

enter your response here

thousand gallons (round your response to three decimal places).

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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