Chapter $3$ Question $22$ Page $131$

Two independent methods of forecasting based on judgement and experience have been prepared each month for the past $10$ months.

The forecasts and actual sales are as follows:

Month Sales Forecast $1$ Forecast $2$

$1770771769$

$2789785787$

$3794790792$

$4780784798$

$5768770774$

$6772768770$

$7760761759$

$8775771775$

$9786784788$

$10790788788$

Compute MSE, MSD for each Forecast

Forecast $1$ MSE:

Forecast $2$ MSE:

Forecast $1$ MSD:

Forecast $2$ MSD:

Which Forecast seems superior $($F$1$ or F$2)?$