MGT555: Lower values, on the other hand, correspond to data points gathering closer to it. The mean absolute deviation is also: Business Analytics Assignment, UiTM, Malaysia

Lower values, on the other hand, correspond to data points gathering closer to it. The mean absolute deviation is also known as the average absolute deviation and the mean deviation.​MSE is used to determine how accurate estimations or forecasts are.

The lower the MSE, the closer the forecast is to reality. This is a model evaluation metric for regression models, with a lower value indicating a better fit.​MAPE can be used to calculate the percentage difference between any expected and actual number.

MAPE can be used to forecast any type of system, including generic regression problems and time series data. Based on the table, between k=2, k=3, and k=4 we can see that k=2 is giving a better forecast for the year 2018 because it has the lower MAD compared to k=3 and k=4 moving average model.

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