Two Forecasting Models Were Used to Predict the Future Values $F_{t}$

question 165

Essay

Two forecasting models were used to predict the future values of a time series.These are shown in the accompanying table,together with the actual values.
Forecast Value $F_{t}$ $\quad$ $\quad$ $\quad$ $\quad$ Actual Value $y_{t}$
$\begin{array}{cc|c}\text { Model 1 } & \text { Model } 2 & \\\hline 9.0 & 7.7 & 7.6 \\7.8 & 8.1 & 8.2 \\7.0 & 8.5 & 8.9 \\9.6 & 9.0 & 11.0\end{array}$ Compute the mean absolute deviation (MAD)and sum of squares for forecast (SSE)for each model to determine which was more accurate.

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