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 = 126 + 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, 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 | 146 |
12 | 146 |
13 | 148 |
14 | 144 |
15 | 153 |
16 | 149 |
17 | 154 |
18 | 157 |
19 | 162 |
20 | 166 |
MAD (Naive) | |
MAD (Linear) | |
MSE (Naive) | |
MSE (Linear) | |
(Click to select) Naive method Linear trend provides forecasts with less average error and less average squared error.
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