Two different forecasting algorithms is applied for two different products. The

ID: 3394622 • Letter: T

Question

Two different forecasting algorithms is applied for two different products. The forecast accuracy metrics are calculated as in the following table.

Which of the following statements is/are true?

1)Generally speaking, Forecasting Algorithm B is a better method for Products I and II

2)Forecasting algorithm A’s performance was better for Product I than for Product II

3)Forecasting algorithm B’s performance was better for Product I than for Product II

4)For Product I only, Algorithm A is better than Algorithm B

Forecasting Algorithm A MAPE 20% 35% MAD 350 180 Forecasting Algorithm B MAPE 15% 10% MAD Product I 1) Product II 150

The lower the MAPE and MAD, the better the algorithm

Therefore,

1 is true, and 3 is true

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