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 F+=123 +1.9t, 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.) 11234567890 ल t Units Sold 11 146 12 147 150 145 20 157 149 155 158 160 167 MAD (Naive) MAD (Linear) MSE (Naive) MSE (Linear) Linear trend 5.22 2.81 provides forecasts with less average error and less average squared error.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.6: Moving Averages Models
Problem 22P: The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six...
icon
Related questions
Question
None
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 +1.9t, 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
11
Units Sold
146
12
147
13
150
14
145
15
157
16
149
17
155
18
158
19
160
20
167
MAD (Naive)
5.22
MAD (Linear)
2.81
MSE (Naive)
MSE (Linear)
Linear trend
provides forecasts with less average error and less average squared error.
Transcribed Image Text: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 +1.9t, 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 11 Units Sold 146 12 147 13 150 14 145 15 157 16 149 17 155 18 158 19 160 20 167 MAD (Naive) 5.22 MAD (Linear) 2.81 MSE (Naive) MSE (Linear) Linear trend provides forecasts with less average error and less average squared error.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 5 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Contemporary Marketing
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning
Marketing
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing