Problem $4$ Forecasting $(25\%)$:

PART $1$:

Following table shows the actuals and forecasts from a beer manufacturer in six weeks. Calculate MAD, MSE, and

MAPE to measure forecasting performance. Which measure $($i$.$e$.,$ MAD, MSE, MAPE$)$ is the best in evaluating

forecasting performance?

Actual and Forecasted Sales of Beer in $\text{'}000$ bottles

PART $2$:

Following table shows actuals and three different forecasts derived from three different methods from a beer

manufacturer in six weeks. Calculate MSE only for the three different forecasting methods. Which forecasting

method is the best in terms of forecasting accuracy?

Actual and Forecasted Sales of Beer in $\text{'}000$ bottles