Question
An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trend equation and the naive approach. The linear
An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trend equation and the naive approach. The linear trend equation is Ft= 123 + 1.8t, and it was developed using data from periods 1 through 10. Based on data for periods 11 through 20 as shown in the table, which of these two methods has the greater accuracy if MAD and MSE are used?(Round your intermediate calculations and final answers to 2 decimal places.)
t Units Sold
11 143
12 146
13 152
14 142
15 154
16 152
17 155
18 155
19 159
20 165
MAD (Naive) _______
MAD (Linear)_______
MSE (Naive)________
MSE (Linear)_______
Naive method or Linear trend ? provides forecasts with less average error and less average squared error.
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