Problem 3-21 (Algo)

Two different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are as follows:

		PREDICTED DEMAND
Period	Demand	F1	F2
1	68	62	67
2	75	69	68
3	70	72	70
4	74	66	70
5	69	73	72
6	72	65	76
7	80	74	79
8	78	74	85

a. Compute MAD for each set of forecasts. Given your results, which forecast appears to be more accurate? (Round your answers to 2 decimal places.)

MAD F1 __

MAD F2 __

___ appears to be more accurate

b. Compute the MSE for each set of forecasts. Given your results, which forecast appears to be more accurate? (Round your answers to 2 decimal places.)

MAD F1 __

MAD F2 __

___ appears to be more accurate

c. Compute MAPE for each data set. Which forecast appears to be more accurate? (Round your intermediate calculations to 2 decimal places and and final answers to 2 decimal places.)

MAD F1 __

MAD F2 __

___ appears to be more accurate