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. The
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 t and it was developed using data from periods through
Requirements: Based on data for periods through as shown below, show which of the forecasting technique has greater accuracy?
a Perform demand forcast for periods using the nave method.
b Perform demand forecast for periods using the given linear trend equation.
c Compute MAD mean absolute deviation and determine which forecast technique is better.
Period t Units sold
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