The mean absolute deviation MAD and the mean of the sum of s
The mean absolute deviation (MAD) and the mean of the sum of squared errors (MSE) are the
most commonly used measures of forecast accuracy. The model that forecasts the data best will
usually have the:
Solution
The forecast model is best
(1) when the lowest MSE then the forecast has the greatest accuracy
and
(2)
when lowest MAD has then exponential smoothing works better.
