Question

I've been trying to figure it out for hours but I am still confused.

What is the value of MAD?

Week	Time Series Value	Forecast
1	6	7.00
2	5	3.00
3	4	3.00
4	7	4.00

What is the value of MSE?

Month	Actuals	Forecast
1	7	4.00
2	5	3.00
3	4	4.00
4	3	6.00

Answer 1

Solution:

Part a) What is the value of MAD?

Given:

Week	Time Series Value	Forecast
1	6	7
2	5	3
3	4	3
4	7	4

We have to find MAD , that is mean absolute deviation.

Thus

Part b) What is the value of MSE?

Given:

Month	Actuals	Forecast
1	7	4
2	5	3
3	4	4
4	3	6

Formula:

Thus

Month	At: Actuals	Ft  : Forecast	Ft  - At	(Ft  - At)^2
1	7	4	=(4-7)=-3	9
2	5	3	=(3-5)=-2	4
3	4	4	=(4-4)=0	0
4	3	6	=(6-3)=3	9

Thus