Question: Following are two weekly forecasts made by two different methods for the number of litres of gasoline, in thousands, demanded at a local gasoline station.

Following are two weekly forecasts made by two different methods for the number of litres of gasoline, in thousands, demanded at a local gasoline station. Also shown are actual demand levels, in thousands of litres:

Week

Forecasts

Actual Demand

Method 1

Method 2

1

0.90

0.77

0.70

2

1.02

1.20

0.98

3

0.97

0.90

0.96

4

1.20

1.15

0.97

What are the MAD and MSE for each method?

The MAD for Method 1=___ thousand litres (round your response to three decimal places).

The mean squared error (MSE) for Method 1 is ___ (thousand litres)^2 (round your response to three decimal places).

The MAD for Method 2 is ___ thousand litres (round your response to three decimal places).

The mean squared error (MSE) for Method 2 is ___ (thousand litres)^2 (round your response to three decimal places).

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