Two forecasting models were used to predict the future value of a time series. These are shown in the accompanying table, together with the actual values. Forecast Value Ft Model 1Model 2Actual Yt 7.56.36 6.36.76.6 5.47.17.3 8.27.59.4 Compute MAD and MPE for each model and determine which was more accurate.

Mean Absolute Deviation(MAD) and Mean Squared Error (MSE) are the two most commonly used…

Answered: Two forecasting models were used to…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Two forecasting models were used to predict the future value of a time series. These are shown in the accompanying table, together with the actual values.

	Forecast Value Ft
Model 1	Model 2	Actual Yt
7.5	6.3	6
6.3	6.7	6.6
5.4	7.1	7.3
8.2	7.5	9.4

Compute MAD and MPE for each model and determine which was more accurate.

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