Two different forecasting algorithms is applied for two diff

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

Solution

The lower the MAPE and MAD, the better the algorithm

Therefore,

1 is true, and 3 is true