How to solve

Two different forecasting techniques $($F$1$ and F$2)$ were used to forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are as follows:

$\backslash$table$[[$Period$,$Demand,PREDICTED DEMAND$],[$F$1,$F$2],[1,68,63,66],[2,75,70,67],[3,70,75,70],[4,74,69,72],[5,69,70,73],[6,72,68,75],[7,80,70,77],[8,78,74,84]]$

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a$.$ Compute MAD for each set of forecasts. Given your results, which forecast appears to be more accurate?

Note: Round your answers to $2$ decimal places.

$\backslash$table$[[$MAD F$1,],[$MAD F$2,]]$

appears to be more accurate.

b$.$ Compute the MSE for each set of forecasts. Given your results, which forecast appears to be more accurate?

Note: Round your answers to $2$ decimal places.

$\backslash$table$[[$MSE F$1,],[$MSE F$2,]]$

appears to be more accurate.

In practice, either MAD or MSE would be employed to compute forecast errors. What factors might lead a manager to choose one rather than the other?

Either one might already be in use, familiar to users, and have past values for comparison. If

are u

d$.$ Compute MAPE for each data set. Which forecast appears to be more accurate?

Note: Round your intermediate calculations to $2$ decimal places and and final answers to $2$ decimal places.

$\backslash$table$[[$MAPE F$1,,\%$