https://d2vlcm61l7u1fs.cloudfront.net/media%2Fa0a%2Fa0a5efdc-7b92-4b35-9510-2728bacb6e4a%2Fphp5tlYmz.png
F2 = 27
F3 = 27 + 0.3*(29-27) = 27.6
Similarly,
Period Demand (D) Forecast (F1) Error (D-F) Error Abs
1 27
2 29 27.00 2.00 2.00
3 33 27.60 5.40 5.40
4 41 29.22 11.78 11.78
5 44 32.75 11.25 11.25
6 43 36.13 6.87 6.87
7 44 38.19 5.81 5.81
8 46 39.93 6.07 6.07
9 47 41.75 5.25 5.25
10 41 43.33 (2.33) 2.33
55 395 316 52 57
MAD = 57/9 = 6.31
b) Using Trend forecast:
TAF(t) = F(t) + T(t)
F(t+1) = F(t) + alpha*(Actual(t) – F(t))
T(t+1) = T(t) + o*(F(t+1) – F(t) – T(t))
On Solving:
Period Actual F T TAF Error Abs Error
1 27 26.00 1.00 27.00 0.00 0.00
2 29 26.30 0.72 27.02 1.98 1.98
3 33 27.11 0.76 27.87 5.13 5.13
4 41 28.88 1.16 30.04 10.96 10.96
5 44 32.51 2.15 34.66 9.34 9.34
6 43 35.96 2.67 38.63 4.37 4.37
7 44 38.07 2.45 40.52 3.48 3.48
8 46 39.85 2.18 42.03 3.97 3.97
9 47 41.70 2.05 43.74 3.26 3.26
10 41 43.29 1.86 45.15 -4.15 4.15
Error = Actual – Forecast
MAD = (1.98+5.13+…………………..+4.15)/9 = 46.65/9 = 5.18
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