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?
aPerform demand forecast for periods using the nave method.
bPerform 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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