MAD = 0.51/4 = 0.1275 and MSE = 0.0721/4 = 0.018.
<h3>What is MAD and MSE?</h3>
MAD( Mean Absolute Deviation) and MSE( Mean Squared Error) are the most commonly used forecast error measures. MAD is the average of the absolute errors and MSE is the average of the squared errors.
Solution:- <u>Method</u><u> </u><u>1</u> Week Method 1 Actual E E^2
1 0.9 0.7 0.2 0.04
2 1.05 1 0.05 0.0025
3 0.95 1 0.05 0.0025
4 1.2 1 <u> 0.2 0.04</u>
0.5 0.085
MAD = sum of error/n
= 0.5/4
=0.125
MSE = sum of squared error/n
= 0.0.85/4
= 0.02125
<u>Method 2</u><u> </u> Week Method 2 Actual E E^2
1 0.8 0.7 0.1 0.01
2 1.2 1 0.2 0.04
3 0.9 1 0.1 0.01
4 1.11 1 <u>0.11 0.0121</u>
0.51 0.0721
Hence, MAD = 0.51/4 = 0.1275 and MSE = 0.0721/4 = 0.018.
Learn more about the MAD and MSE here:-
brainly.com/question/14688363
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