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:

Inorganic Compounds

Chemical compounds that generally do not contain carbon-hydrogen bonds, including salts, metals, and minerals.

Organic Compounds

Chemical substances that contain carbon bonded to hydrogen, with a vast range of biological, industrial, and environmental applications.

Kinetic Energy

The energy that an object possesses due to its motion, calculated as one-half the mass of the object multiplied by the square of its velocity.

Uranium Oxide

A compound of uranium that is used as a nuclear fuel in reactors and as a colorant in ceramics.