The forecasts generated by three forecasting methods and actual demand for the Torrance Company are as follows:

MONTH	DEMAND	FORECAST 1	FORECAST 2	FORECAST 3
1	269	275	268	280
2	289	266	287	295
3	294	290	292	290
4	278	284	298	280
5	268	270	274	270
6	269	268	270	260

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?

Answer