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

Week Forecast Method 1 Actual Demand 1 0.95 0.72 2 1.08 1.05 3 0.97 0.96 4 1.20 1.00

Week Forecast Method 2 Actual Demand 1 0.77 0.72 2 1.21 1.05 3 0.88 0.96 4 1.15 1.00

The MAD for Method 1 =

The absolute deviation based on the forecast developed using Method 1 adds to

0.4100.410

thousand gallons (round your response to three decimal places).

Part 4

The MAD for Method 1 is

0.1030.103

thousand gallons (round your response to three decimal places).

Part 5

Mean squared error (MSE) is the average of

(ActualForecast)2.

For the information given in Method 1, the value of n =

4.

The value of

(ActualForecast)2

will be

0.0580.058

(thousand gallons)2

(round your response to three decimal places).

Part 6

The mean squared error (MSE) for Method 1 is

0.0140.014

(thousand gallons)2

(round your response to three decimal places).

Part 7

The absolute deviation based on the forecast developed using Method 2 adds to

0.5000.500

thousand gallons (round your response to three decimal places).

Part 8

The MAD for Method 2 is

0.1250.125

thousand gallons (round your response to three decimal places).

Part 9

The relationship for calculating

MSE = (Forecast Error)2n.

For the given information, in this relationship n =

4.

The value of

(ActualForecast)2for

Method 2 will be

0.0650.065

(thousand gallons)2

(round your answer to three decimal places).

Part 10

The mean squared error (MSE) for Method 2 is

enter your response here

(thousand gallons)2