A Manager Wants to Choose One of Two Forecasting Alternatives

question 123

Essay

A manager wants to choose one of two forecasting alternatives. Each alternative was tested using historical data. The resulting forecast errors for the two are shown in the table. Analyze the data and recommend a course of action to the manager. $$\begin{array} { l r r r r r r r r r } \text { Period (t) } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 \\\text { Alt. \#1 } & 3 & - 2 & 0 & 2 & 1 & - 2 & 2 & - 1 & 2 \\\text { Alt.\#2 } & 4 & 3 & - 3 & - 1 & 1 & - 1 & 0 & 1 & 0\end{array}$$