A Firm Has Prepared Two Different Models to Be Used

question 4

Essay

A firm has prepared two different models to be used for forecasting. One has a fairly large root mean squared error (RMSE), the other has a much smaller RMSE. Which forecast would you expect to give the more accurate prediction? Explain.

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Definitions:

Master Production Schedule

A plan for the production of specific items at certain times, quantities, and detailed specifications in a manufacturing process.

Advertising

The practice of promoting products, services, or brands through various forms of media to attract and retain customers.

Promotion

is a marketing strategy aimed at increasing awareness, sales, or interest in a product or service, often through advertising, discounts, or publicity events.

Graphical Techniques

Aggregate planning techniques that work with a few variables at a time to allow planners to compare projected demand with existing capacity.