A firm has developed forecasts for the yen for each of the four quarters of a year.
Quarter Yen forecast Yen actual value Pound forecast Pound actual value
1 $.0050 $.0051 $1.50 $1.51
2 $.0048 $.0052 $1.53 $1.50
3 $.0053 $.0052 $1.55 $1.58
4 $.0055 $.0056 $1.49 $1.52
a- Calculate the mean absolute forecast errors in percentage terms over the four quarters for both the yen and the pound.
b. Which currency forecasts were more accurate?