Theil's U-statistic for errors, using a regression forecast, turns out to be = 1.24. What does that mean? Theil's U = (Standard error of the forecast model being used) / (Standard error of the naive forecast model) The nave method is as good as the regression forecasting technique being used. b. The regression forecasting technique being used is better than the nave method. E=mc2 d. The nave method produces better results than the regression technique being used Ways to reduce dependence on forecasts, that normally do NOT make business sense: Reduce your product variety in terms of product sizes and colors to the extent possible Reduce supplier lead times (period from date of order placement to receipt of supplies) and lead time variability to the extent possible Ob. Buy reserve capacity on a regular basis for demand surges Identify and offer substitute products to the extent possible d