Assume that you have tried three different forecasting models.For the first, the MAD = 2.5, for the second, the MSE = 10.5, and for the third, the MAPE = 2.7.We can then say
A)the third method is the best.
B)the second method is the best.
C)method two is the least preferred.
D)We cannot make a determination as to which method is best.

Question

Quizplus · Accepted Answer

The comparison of forecasting models using MAD (Mean Absolute Deviation), MSE (Mean Squared Error), and MAPE (Mean Absolute Percentage Error) directly is not valid because these metrics measure different aspects of forecast errors and are on different scales. Therefore, without converting them into comparable metrics or knowing the context of their application, we cannot determine which method is best.

Assume That You Have Tried Three Different Forecasting Models