Question: 4. A student is comparing accuracy of two forecasting methods. Calculate MAD and MSE. Which method is more accurate using MAD? Which method is more

4. A student is comparing accuracy of two

4. A student is comparing accuracy of two forecasting methods. Calculate MAD and MSE. Which method is more accurate using MAD? Which method is more accurate using MSE? Actual Method B Method A Error Abs Error Month Sales Forecast Error Forecast Error Error Abs Error 3 3 50 45 5 25 53 -3 9 44 33 11 121 45 - 1 1 1 1 January February March April May 69 -11 121 73 -4 4 16 80 80 77 -3 9 80 -3 3 9 90 95 -5 25 85 5 5 25 June 100 110 100 105 -5 5 25 -10 10 120 110 100 120 EU 5 AEE WEE 0 0 0 56 60 -4 16 60 -4 4 July August September October November 16 70 80 -10 100 72 -2 2 4 55 60 -5 25 60 -5 5 25 68 78 -10 100 70 -2 2 2 4 December 98 80 18 18 324 100 -2 2 4 Total -14 102 1,066 923 -26 36 138

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