Question: (SHOW YOUR COMPLETE WORK) Two independent forecasting methods 1 and 2 have been used each week for the past ten weeks. The actual demand and

(SHOW YOUR COMPLETE WORK) Two independent forecasting methods 1 and 2 have been used each week for the past ten weeks. The actual demand and demand forecasts from these two methods are shown below.

WEEK

ACTUAL DEMAND

(in units)

DEMAND FORECASTS (in units)

Method 1

Method 2

Ten weeks ago

160

157

158

Nine weeks ago

155

155

156

Eight weeks ago

156

157

152

Seven weeks ago

158

156

157

Six weeks ago

154

153

155

Five weeks ago

152

154

154

Four weeks ago

153

156

156

Three weeks ago

156

155

154

Two weeks ago

154

156

154

One week ago

155

157

156

Calculate the Mean Absolute Deviation (MAD) measures for forecasting methods 1 and 2. Which forecasting method is better based on MAD? [14 points]

Calculate the Mean Squared Error (MSE) measures for forecasting methods 1 and 2. Which forecasting method is better based on MSE? [14 points]

Calculate the Mean Absolute Percent Error (MAPE) measures for forecasting methods 1 and 2. Which forecasting method is better based on MAPE? [35 points]

Use the appropriate label/unit of measurement in your answers. Leave the numbers in decimal and go up to 5 decimal places for higher accuracy.

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