An analyst must decide between two different forecasting techniques for weekly sales of bicycles: a linear trend equation and the nave approach. The linear trend equation is: i i Y 12 2X , and it was developed using data from periods 1 through 10. Based on the data from periods 11 through 20, calculate the MSE and MAPE. MSE INSTEAD OF MPE

Problem 1 An analyst must decide between two different forecasting techniques for weekly sales of bicycles: a linear trend equation and the nave approach. The linear trend equation is: Y; = 12+2X;, and it was developed using data from periods 1 through 10. Based on the data from periods 11 through 20, calculate the MSE and MAPE. Based on the values of MSE and MAPE, comment on which of the two methods has the greater overall accuracy. Compare the two methods in terms of the forecast bias. t t Units Sold 25 Units Sold 39 11 16 12 17 48 28 34 13 18 50 47 14 40 19 15 44 20 54