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In order to forecast sales, a marketing analyst used two different forecasting methods: the simple trend method, and the quadratic trend method. The results are
In order to forecast sales, a marketing analyst used two different forecasting methods: the simple trend method, and the quadratic trend method. The results are summarized in the following table: Simple Trend Method Year Actual Value Forecast Value Year 2018 100 98 2018 2019 110 104 2019 2020 115 120 2020 Quadratic Trend Method Actual Value Forecast Value 100 99 110 103 115 117 1. Compute the mean square error (MSE) for the simple trend method; 2. Compute the mean square error (MSE) for the quadratic trend method; 3. Which method appears to provide the better forecast? Why
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