Question

A particular forecasting model was used to forecast a six-month period. Here are the forecasts and actual demands that resulted: FORECAST ACTUAL April 256 206 May 328 252 June 403 330 July 353 305 August 378 324 September 452 395 a. Find the tracking signal for each month. (Negative values should be indicated by a minus sign. Round your answers to the nearest whole number.) b. Is the model being used is giving acceptable answers. No, the model's performance is poor. Yes, the model's performance is good.

Answer 1

Answer:

Explanation:

FORECAST ACTUAL

April 256 206

May 328 252

June 403 330

July 353 305

August 378 324

September 452 395

April Forecast Accuracy = 206/256 = 80.5%

May Forecast Accuracy = 252/328 = 76.8%

June Forecast Accuracy = 330/403 = 81.9%

July Forecast Accuracy = 305/353 = 86.4%

August Forecast Accuracy = 324/378 = 85.7%

September Forecast Accuracy = 395/452 = 87.4%

B. The Model needs to be changed, as it delivers below 100% month on Month.

The Business is over forecasting consistently and need to change the Model immediately to reflect the right forecasts for the next 6 months.