Question: . An analyst must decide between two different forecasting techniques for weekly sales of inline skates: a linear trend equation and the na ve approach.

. An analyst must decide between two different forecasting techniques for
weekly sales of inline skates: a linear trend equation and the nave approach. The linear trend
equation is yt =124+2t, and it was developed using data from periods 1 through 10.
Requirements: Based on data for periods 11 through 19 as shown below, show which of the
forecasting technique has greater accuracy?
a) Perform demand forecast for periods 1219 using the nave method.
b) Perform demand forecast for periods 1119 using the given linear trend equation.
c) Compute MAD (mean absolute deviation) and determine which forecast technique is
better.
 . An analyst must decide between two different forecasting techniques for

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