Question: A forecaster is assessing two different models for demand. The output from each model and the actual demand data appears in the table. Use MAD
A forecaster is assessing two different models for demand. The output from each model and the actual demand data appears in the table. Use MAD to compare the two models. Which model does a better job of forecasting?
| Demand | Model 1 | Model 2 |
| 52 | 55 | 51 |
| 52 | 54.7 | 51.9 |
| 54 | 54.5 | 52.7 |
| 56 | 54.2 | 53.3 |
| 60 | 54.4 | 54.1 |
| 56 | 55 | 54.6 |
| 58 | 55.1 | 55.1 |
| 58 | 55.4 | 56 |
| 56 | 55.6 | 56.5 |
| 52 | 55.3 | 56 |
| 53 | 55.4 | 55.5 |
| 59 | 55.2 | 55 |
Group of answer choices:
(A) Model 2 is 6% better
(B) Model 2 is 12% better
(C) Model 1 is 4% better
(D) Model 1 is 15% better
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
