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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=124+2.1t, and it was developed using data from periods 1 through 10 . Based on data for periods 11 through 20 as shown in the table, develop a linear trend forecast for periods 11 through 20 , and a naive forecast for periods 11 through 20 , then calculate MAD for each method. Which forecast has the greater accuracy, according to your MAD? (Round your intermediate calculations and final answers to 2 decimal places.) Click here for the Excel Data File MAD for naive forecast: MAD for linear trend forecast: A forecast with less average absolute error is provided by the method. Naive method Linear trend
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