Following are two weekly forecasts made by two different methods for the number of gallons of gasoline, in thousands, demanded at a local gasoline station. Also shown are actual demand levels, inthousands of gallons:Week1234ForecastMethod 10.951.080.951.20ActualDemand0.720.981.000.97Week1234ForecastMethod 20.821.190.921.15ActualDemand0.720.981.000.97The MAD for Method 1= 0.153 thousand gallons (round your response to three decimal places).The mean squared error (MSE) for Method 1 = thousand gallons² (round your response to three decimal places).

WeekForecast method 1Actual10.950.7221.080.9830.95141.20.97

Answered: The MAD for Method 1 = 0.153 thousand…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.7: Exponential Smoothing Models

Problem 28P: The file P13_28.xlsx contains monthly retail sales of U.S. liquor stores. a. Is seasonality present...

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The MAD for Method 1 = 0.153 thousand gallons (round your response to three decimal places). The mean squared error (MSE) for Method 1 = thousand gallons² (round your response to three decimal places).