The image presents a comparison of two weekly forecasts made by different methods for the number of gallons of gasoline, in thousands, demanded at a local gasoline station. The data is given in thousands of gallons.**Forecast Method 1:**- **Week 1:** Forecast = 0.95, Actual = 0.72- **Week 2:** Forecast = 1.08, Actual = 0.98- **Week 3:** Forecast = 0.95, Actual = 1.00- **Week 4:** Forecast = 1.20, Actual = 0.97**Forecast Method 2:**- **Week 1:** Forecast = 0.82, Actual = 0.72- **Week 2:** Forecast = 1.19, Actual = 0.98- **Week 3:** Forecast = 0.92, Actual = 1.00- **Week 4:** Forecast = 1.15, Actual = 0.97**Analytical Observations:**- The Mean Absolute Deviation (MAD) for Method 1 is 0.153 thousand gallons (rounded to three decimal places).- The Mean Squared Error (MSE) for Method 1 requires input for completion, expressed in thousand gallons squared (with instructions to round to three decimal places).These metrics help in evaluating the accuracy of the forecast methods compared to the actual demand levels.

WeekForecast method 1Actual10.950.7221.080.9830.95141.20.97

Answered: The MAD for Method 1 = 0.153 thousand…

Practical Management Science

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Chapter2: Introduction To Spreadsheet Modeling

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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The MAD for Method 1 = 0.153 thousand gallons (round your response to three decimal places). The mean squared error (MSE) for Method 1 = thousand gallons² (round your response to three decimal places).