A forecaster is assessing two different models for demand. The output from each model and the actual demand data appear in the table. Use MAD and a tracking signal to compare the two models. Which model does a better job of forecasting?
$$\begin{array} { | c | c | c | }
\hline \text { Demand } & \text { Model 1 } & \text { Model 2 } \
\hline 52 & 55.0 & 51.0 \
\hline 52 & 54.7 & 51.9 \
\hline 60 & 54.4 & 52.0 \
\hline 56 & 55.0 & 59.2 \
\hline 58 & 55.1 & 56.3 \
\hline 58 & 55.4 & 57.8 \
\hline 52 & 55.6 & 58.0 \
\hline 57 & 55.3 & 52.6 \
\hline 53 & 55.4 & 56.6 \
\hline 57 & 55.2 & 53.4 \
\hline
\end{array}$$

Question

A forecaster is assessing two different models for demand. The output from each model and the actual demand data appear in the table. Use MAD and a tracking signal to compare the two models. Which model does a better job of forecasting?
 $$\begin{array} { | c | c | c | } 
\hline \text { Demand } & \text { Model 1 } & \text { Model 2 } \
\hline 52 & 55.0 & 51.0 \
\hline 52 & 54.7 & 51.9 \
\hline 60 & 54.4 & 52.0 \
\hline 56 & 55.0 & 59.2 \
\hline 58 & 55.1 & 56.3 \
\hline 58 & 55.4 & 57.8 \
\hline 52 & 55.6 & 58.0 \
\hline 57 & 55.3 & 52.6 \
\hline 53 & 55.4 & 56.6 \
\hline 57 & 55.2 & 53.4 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of A forecaster is assessing two different models for demand. The output from each model and the actual demand data appear in the table. Use MAD and a tracking signal to compare the two models. Which model does a better job of forecasting?
 $$\begin{array} { | c | c | c | } 
\hline \text { Demand } & \text { Model 1 } & \text { Model 2 } \
\hline 52 & 55.0 & 51.0 \
\hline 52 & 54.7 & 51.9 \
\hline 60 & 54.4 & 52.0 \
\hline 56 & 55.0 & 59.2 \
\hline 58 & 55.1 & 56.3 \
\hline 58 & 55.4 & 57.8 \
\hline 52 & 55.6 & 58.0 \
\hline 57 & 55.3 & 52.6 \
\hline 53 & 55.4 & 56.6 \
\hline 57 & 55.2 & 53.4 \
\hline
\end{array}$$

A Forecaster Is Assessing Two Different Models for Demand