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 and it was developed using data from periods through
Based on data for periods through as shown in the table, develop a linear trend forecast for periods through and a naive
forecast for periods through then calculate MAD for each method. Which forecast has the greater accuracy, according to your
MAD?
Round your intermediate calculations and final answers to decimal places.
Click here for the Excel Data File
MAD for naive forecast:
MAD for linear trend forecast:
A forecast with less average absolute error is provided by the
Naive method
Linear trend
method.
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