Question: CoastCo Insurance, Inc., is interested in developing a forecast of larceny thefts in the United States. It has found the following data: Year Larceny Thefts
CoastCo Insurance, Inc., is interested in developing a forecast of larceny thefts in the United States. It has found the following data:
Year | Larceny Thefts* | Year | Larceny Thefts* |
1 | 4,151 | 10 | 7,194 |
2 | 4,348 | 11 | 7,143 |
3 | 5,263 | 12 | 6,713 |
4 | 5,978 | 13 | 6,592 |
5 | 6,271 | 14 | 6,926 |
6 | 5,906 | 15 | 7,257 |
7 | 5,983 | 16 | 7,500 |
8 | 6,578 | 17 | 7,706 |
9 | 7,137 | 18 | 7,872 |
Plot this series in a time-series plot and make a naive forecast for years 2 through 19.
Calculate the MAPE for years 2 through 18.
On the basis of these measures and what you see in the plot, what do you think of your forecast? Explain.
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Year Larceny Thefts Nave Forecast Error Absolute Error Absolute Error 1 4151 2 4348 4151 197 ... View full answer
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