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

question 42

Essay

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?

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Definitions:

Broadcast Medium

A communication channel that disseminates information, such as audio or visual content, to a wide audience simultaneously.

Coaxial

A type of cable with an inner conductor surrounded by a tubular insulating layer and shield, used for transmitting electrical signals.

Satellite

An artificial body placed in orbit around the earth or moon or another planet in order to collect information or for communication.

Broadcast Medium

A platform or channel for distributing content to a wide audience, such as television, radio, or online streaming services.