Question: 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
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. t Units Sold t Units Sold 11 147 16 152 12 148 17 155 13 151 18 157 14 145 19 160 15 155 Based on data for periods 11 through 19 as shown in the above table, which of these two methods has greater accuracy? (You can use any one of the three measures of forecast errors). (Round the final answers to 2 decimal places.) Naive Linear Trend MAD MSE MAPE % %
--------------- trend provides more accurate forecasts.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
