Two different forecasting techniques (F1 and F2)were used to forecast sales.Actual sales and the two sets of forecasts are as follows:
$$\begin{array} { | l | c | c | c | c | c | c | }
\hline \text { Perind } & 1 & 2 & 3 & 4 & 5 & 6 \
\hline \text { Actual Sales } & 12 & 14 & 13 & 11 & 17 & 18 \
\hline \mathbf { F 1 } & 10 & 13 & 15 & 10 & 18 & 18 \
\hline \mathbf { F 2 } & 11 & 15 & 12 & 13 & 15 & 17 \
\hline
\end{array}$$
a.Compute MAD for each forecasting technique.Which forecasting technique is more accurate based on the MAD criterion?
b.Compute the MSE for each set of forecasts.Which forecasting technique is more accurate based on the MSE criterion?

Question

Two different forecasting techniques (F1 and F2)were used to forecast sales.Actual sales and the two sets of forecasts are as follows:
 $$\begin{array} { | l | c | c | c | c | c | c | } 
\hline \text { Perind } & 1 & 2 & 3 & 4 & 5 & 6 \
\hline \text { Actual Sales } & 12 & 14 & 13 & 11 & 17 & 18 \
\hline \mathbf { F 1 } & 10 & 13 & 15 & 10 & 18 & 18 \
\hline  \mathbf { F 2 } & 11 & 15 & 12 & 13 & 15 & 17 \
\hline
\end{array}$$ 
a.Compute MAD for each forecasting technique.Which forecasting technique is more accurate based on the MAD criterion?
b.Compute the MSE for each set of forecasts.Which forecasting technique is more accurate based on the MSE criterion?

Quizplus · Accepted Answer

The Answer of Two different forecasting techniques (F1 and F2)were used to forecast sales.Actual sales and the two sets of forecasts are as follows:
 $$\begin{array} { | l | c | c | c | c | c | c | } 
\hline \text { Perind } & 1 & 2 & 3 & 4 & 5 & 6 \
\hline \text { Actual Sales } & 12 & 14 & 13 & 11 & 17 & 18 \
\hline \mathbf { F 1 } & 10 & 13 & 15 & 10 & 18 & 18 \
\hline  \mathbf { F 2 } & 11 & 15 & 12 & 13 & 15 & 17 \
\hline
\end{array}$$ 
a.Compute MAD for each forecasting technique.Which forecasting technique is more accurate based on the MAD criterion?
b.Compute the MSE for each set of forecasts.Which forecasting technique is more accurate based on the MSE criterion?

Two Different Forecasting Techniques (F1 and F2)were Used to Forecast