Two different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are as follows:

PeriodDemandF1F216866662756868370727047471725697274672707678071788787480

a. Compute MAD for each set of forecasts. Given your results, which forecast appears to be more accurate? (Round your answers to 1 decimal place.) MAD F1:

MAD F2:

Which appears to be more accurate:

b. Compute the MSE for each set of forecasts. Given your results, which forecast appears to be more accurate? (Round your answers to 2 decimal places.) MSE F1:

MSE F2:

which appears to be more accurate:

c. In practice, either MAD or MSE would be employed to compute forecast errors. What factors might lead a manager to choose one rather than the other?

d. Compute MAPE for each data set. Which forecast appears to be more accurate? (Round your intermediate calculations and final answers to 2 decimal places.)

MAPE F1:

MAPE F2:

which appears to be more accurate