An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trend equation and the naive approach. The linear trend equation is F+=123 +1.9t, 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.) 11234567890 ल t Units Sold 11 146 12 147 150 145 20 157 149 155 158 160 167 MAD (Naive) MAD (Linear) MSE (Naive) MSE (Linear) Linear trend 5.22 2.81 provides forecasts with less average error and less average squared error.
An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trend equation and the naive approach. The linear trend equation is F+=123 +1.9t, 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.) 11234567890 ल t Units Sold 11 146 12 147 150 145 20 157 149 155 158 160 167 MAD (Naive) MAD (Linear) MSE (Naive) MSE (Linear) Linear trend 5.22 2.81 provides forecasts with less average error and less average squared error.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trend equation and the
naive approach. The linear trend equation is Ft = 123 +1.9t, 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
11
Units Sold
146
12
147
13
150
14
145
15
157
16
149
17
155
18
158
19
160
20
167
MAD (Naive)
5.22
MAD (Linear)
2.81
MSE (Naive)
MSE (Linear)
Linear trend
provides forecasts with less average error and less average squared error.
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