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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 in thousands of gallons-
Forecasts
week Method 1 Method 2 Actual Demand
1 0.95 0.77 0.70
2 1.05 1.21 0.98
3 0.92 0.92 0.96
4 1.22 1.11 1.04
The MAD for method 1 = ??
The mean squared error (MSE) for method 1= ??
The MAD for method 2 = ??
The mean squared error (MSE) for method 2= ??
What are routine and strategic decisions? Routine decisions are of repetitive nature that do not need much analysis and evaluation, are in the context of everyday operations of
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