Question

Question: Look at the Rankings Worksheet. The manager has reviewed 3 different Forecasting methods and calculated the Mean Error (Not MAD), MSE and MAPE to evaluate the 3 different methods. Explain the value of using the Mean Error instead of the MAD! 3 different methods chosen ME RMSE MAPE Rank Regression 20876 119540 3.30% HW Additive 4222 102288 2.60% HW Multiplicative 895 78353 1.91% Mean Error, but not MAD MSE MAPE

Answer 1

Here we need t explain instead of using MAD why we use ME.