To test the validity of the forecasting model, compute (absolute) forecast errors, (cumulative) absolute errors, MAD, MSE, and MAPE.
Following is the forecast and the actual demand.
Week
Forecast
Actual
1
3750
3950
2
3600
4190
3
3900
4430
4
4125
3550
5
4350
3900
6
4200
4460
7
4500
4700
A. Find the forecast (absolute) error for Period 7?
B. Find the forecast (cumulative) absolute error for Period 7?
C. Find the MAD (Mean absolute deviation) for period 7?
d. Find MSE (Mean Square Error) for all forecasting periods?
e. Find MAPE (Mean Absolute Percentage Error) for period 7?
