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Unformatted text preview: months. Once we get the percent increase for each month of every year then we must find the average % increase for each month. We get this by adding up each percent increase of every month from every year and dividing each by the amount of years that we compared. Once we obtain the average percent increase from each month we can then use it forecast our demand for 2008. The way we get this is by multiplying the actual sales of the 2007 months by the respected average percent increase of the previous months. Actual Sales of 2007 month x Average % increase of previous months Now that we have our sales forecast for 2008 we can calculate our forecast error by subtracting our Actual sales by our sales forecast: Forecast Error = Actual Sales – Sales Forecast To find our MAD we must use the following formula: MAD = ∑ |dt – Ft| / n...
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This note was uploaded on 09/08/2010 for the course BUS 140 at San Jose State University .