SHOW ALL CALCULATIONS!

MAD = MEAN ABSOLUTE DEVIATION

MSE = MEAN SQUARE ERROR

The forecasts generated by three forecasting methods and actual demand for the Torrance Company are as follows: Fisher Ke, the forecasting manager, has been asked to compute the MSE and MAD for each forecasting method. Which forecasting method is the best? Would your decision on which forecasting method performs better depend on which forecasting accuracy measure (MAD or MSE) is selected