Two different forecasting techniques $($F$1$ and F$2)$ were used to forecast demand for cases of bottled water. Actual demand and the two

sets of forecasts are as follows:

Compute mean forecast error $($MFE$)$ for each set of forecasts and determine which forecast is more accurate.

Tip: You can copy and paste the above table into Excel, or manually set the problem up in Excel. To manually set this problem up in

Excel, create a column for Demand. Next to it$,$ put the F$1$ forecast column. Next to that, create a column to calculate error $($Actual minus

Forecast, in this case, Demand $-$ F$1).$ Then create an F$2$ forecast column, and next to that, a column to calculate error for the difference

between Demand and F$2.$

Round your final answers to $1$ decimal.

MFE for $F1=$

MFE for $F2=$

Which forecast method appears more accurate?

F$1$

F$2$