Question

An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trend equation and the nave approach. The linear trend equation is Ft= 124 + 2.1t, and it was developed using data from periods 1 through 10. Based on data for periods 11 through 20 as shown in the table, which of these two methods has the greater accuracy if MAD and MSE are used? (Round your intermediate calculations and final answers to 2 decimal places.)

t Units Sold

11 145

12 145

13 152

14 144

15 152

16 149

17 156

18 155

19 162

20 165

MAD (Nave) _______

MAD (Linear) _______

MSE

(Nave) _______

MSE (Linear) _______

_________ provides forecasts with less average error and less average squared error.