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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