Two different forecasting techniques were used to forecast demand for cases of bottled water in a store. Actual demand and the two sets of forecasts for seven periods are as follows:

a) Calculate the MAD for F1 and F2. Which is more accurate?

b) Calculate the MSE for F1 and F2. Which is more accurate?

c) Calculate the MAPE for F1 and F2. Which is more accurate?

d) Do all three provide the same conclusion? Do you expect consistent results in every case?

e) In practice, either MAD, MSE, or MAPE would be employed - what factors might lead to a manager to favor one? (options: easy to calculate, easy to understand, or more sensitive to errors)

\begin{tabular}{cccc} & & Forecast Demand \\ \cline { 3 - 4 } Period & Demand & F1 & F2 \\ 1 & 73 & 75 & 75 \\ 2 & 80 & 75 & 76 \\ 3 & 73 & 75 & 72 \\ 4 & 75 & 75 & 73 \\ 5 & 74 & 76 & 73 \\ 6 & 75 & 76 & 77 \\ 7 & 78 & 76 & 74 \\ \hline \end{tabular}