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Business
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Number of pages / Number of words: |
2 / 558 |
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The error is also the lowest for the seasonal index. As shown in (Appendix 2), the error between actual and forecast demand is fluctuating around zero. This also proves this forecast method is most successful. To find the forecast error, we subtracted the actual data by the forecast data. Once we found these numbers for each month, we squared the difference of each month and added them all together...
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Once we got the sum, we divided the number by 12, which is the number of months a year and then found the square root. The standard deviation error is 12065. We then found the z-score of a 95% confidence level which equates to 2.05. We multiplied the error and the confidence interval and then added up the projected forecast from each month for year five...
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