The Actual Demand for a Product and the Forecast for the Product

question 35

Essay

The actual demand for a product and the forecast for the product are shown below. Calculate MAD and MSE. Show all of your computations. $$\begin{array} { l l l } \text { Observation } & \text { Actual Demand } ( A ) & \text { Forecast } ( F ) \\1 & 35 & \cdots \\2 & 30 & 35 \\3 & 26 & 30 \\4 & 34 & 26 \\5 & 28 & 34 \\6 & 38 & 28\end{array}$$

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Definitions:

Cost Center

A division within an organization that does not directly add to profit but still incurs costs, such as a research and development department.

Maintenance Department

A division within an organization responsible for the upkeep, repair, and servicing of equipment and facilities.

Direct Expense

Expenses that can be directly attributed to the production of goods or services, such as raw materials and labor costs.

Profit Center

A profit center is a branch or division of a company that is responsible for generating its own revenue and profit, evaluated independently.