Problem $1$:

$(30$ points$)$

Two different forecasting techniques $(F_1$ and $F_2)$ were used to forecast demand for cases of bottled water. Actual

demand and two sets of forecasts are as follows:

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

Explain.

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

Explain.

$($c$)$ Compute the MAPE for each set of forecasts. Given your results, which forecast appears to be more accurate?

Explain.