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:

Capacitance

The ability of a component or circuit to collect and store energy in the form of an electrical charge, measured in Farads.

Bridge Circuit

A circuit that consists of four sections connected in series to form a closed loop.

D'Arsonval Shunt

A D'Arsonval shunt is a precision resistor used in conjunction with a D'Arsonval meter movement to allow the measurement of high currents by diverting some of the current away from the sensitive galvanometer coil.

Contact Resistance

The resistance to the flow of electricity encountered at the point where two conductive surfaces meet or connect.