37.5 pts | Question 7 Time Series Decomposition for Transsales Method Model type

Question

37.5 pts | Question 7 Time Series Decomposition for Transsales Method Model type Multiplicative Model Data TransSales1000 Length 24 Time Series Decomposition for TransSales1000 Method Model type Multiplicative Model Fitted Trend Equation -30697+ 5.030xt Seasonal Indices Period Index Accuracy Measures MAPE 3.911 MAD 13.336 MSD 348 716 Forecasts Period Forecast 25 257.135 1 059424 2 109257 3 1.64660 4 0.65659 Time Series Decomposition Plot for TransSales Multiplicat ive Model Quarterly Data, Years 2010-2016 Using the output above, interpret MAD for forecast of TranSale 1000 O The forecast systematically overestimates actual revenues by 13.3 dollars on average O The forecast misses the actual revenues 13.3 percent of the time The forecast misses the actual revenues by the square root of $348,000 O The forecast misses the actual revenues by $13.300 on average Question 8 37.5 pts

Explanation / Answer

Interpretation of MAD is ;

The forecast misses the actual revenues by $13.30 on an average.

Mean absolute deviation of a data set means, the average distance between each data value and the mean.

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