Measuring Forecast Performance

Measuring Forecast Performance.

Your company produces and distributes two lines of Consumer External Hard Drives: 1 Terabyte drives (1 Tb) and 5 Terabyte Drives (5 Tb).
The unit sales levels and forecasts for the last two previous years are in the table below. For this exercise, You
have been asked to calculate the Forecast error, Forecast Percentage, Mean percentage Error (MPE) and
Mean Absolute Percentage Error (MAPE) for (a) each type of terabyte (b) each year, and (c) for each two-year
period. The concepts, equations, and examples for how to calculate these forecasting effectiveness are
covered in your textbook on pages 107 – 114. Finally, for each set of problems you will provide insight into the
sales trends, and forecasting effectiveness with a written summary of your findings

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