Compute MAD for each set of forecasts. Given your results, which forecast appears to be more accurate? (Round your answers to 1 decimal place.) 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.) 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?
Two different
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PREDICTED DEMAND |
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| Period | Demand | F1 | F2 |
| 1 | 68 | 66 | 66 |
| 2 | 75 | 68 | 68 |
| 3 | 70 | 72 | 70 |
| 4 | 74 | 71 | 72 |
| 5 | 69 | 72 | 74 |
| 6 | 72 | 70 | 76 |
| 7 | 80 | 71 | 78 |
| 8 | 78 | 74 | 80 |
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Compute MAD for each set of forecasts. Given your results, which forecast appears to be more accurate? (Round your answers to 1 decimal place.)
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.)
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 and final answers to 2 decimal places.)
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