Problem $3-21($Algo$)$

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:

Click here for the Excel Data File

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.

appears to be more accurate.

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

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

appears to be more accurate.

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

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

appears to be more accurate.

c$.$ 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

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.

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

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

appears to be more accurate.

Problem $3-21($Algo$)$

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:

Click here for the Excel Data File

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.

appears to be more accurate.