An analyst ran three models as following with the respective training and validation periods error values: 1.
Question:
An analyst ran three models as following with the respective training and validation periods error values:
1. Linear Trend; Training Period RMSE = 1246.43, Validation Period RMSE = 2130.43
2. Exponential Trend + Seasonality: Training Period RMSE = 643.44, Validation Period RMSE = 690.88
3. Polynomial Trend + Seasonality: Training Period RMSE = 689.09, Validation Period RMSE = 603.78
Based on the above information, please select the right statement below:
a. | Exponential Trend + Seasonality model can forecast future values better than others | |
b. | Polynomial Trend + Seasonality model can forecast future values better than others | |
c. | Linear model can forecast future values better than others | |
d. | None of the above statements are correct. |
Essentials of Business Analytics
ISBN: 978-1285187273
1st edition
Authors: Jeffrey Camm, James Cochran, Michael Fry, Jeffrey Ohlmann, David Anderson, Dennis Sweeney, Thomas Williams