Question: Two different forecasting techniques ( F 1 and F 2 ) were used to Please sole ASAP.forecast demand for cases of bottled water. Actual demand
Two different forecasting techniques F and F were used to Please sole ASAP.forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are as follows:
PREDICTED DEMAND
Period Demand F F
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a Compute MAD for each set of forecasts. Given your results, which forecast appears to be more accurate? Round your answers to decimal places.
b Compute the MSE for each set of forecasts. Given your results, which forecast appears to be more accurate? Round your answers to decimal places.
c In practice, either MAD or MSE would be employed to compute forecast errors. What factors might lead a manager to choose one rather than the other?
d Compute MAPE for each data set. Which forecast appears to be more accurate? Round your intermediate calculations to decimal places and and final answers to decimal places.
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