Compute mad for each set of forecasts

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Reference no: EM131895038

Question: Two different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are as follows:

	PREDICTED DEMAND
Period	Demand	F1	F2
1	68	65	62
2	75	65	65
3	70	74	70
4	74	69	71
5	69	72	76
6	72	68	74
7	80	73	75
8	78	75	82

a. Compute MAD for each set of forecasts. Given your results, which forecast appears to be more accurate? (Round your answers to 2 decimal place.)

MAD F1 _______

MAD F2 _______

b. Compute the MSE for each set of forecasts. Given your results, which forecast appears to be more accurate? (Round your answers to 2 decimal places.)

MSE F1 ______

MSE F2 _______

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 2 decimal places and and final answers to 2 decimal places.)

MAPE F1 _____

MAPE F2 ______

Reference no: EM131895038

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