An analyst must decide between two different forecasting techniques for weekly s

Question

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= 126+ 2.1 and it was developed using data from periods 1-10. Based on data from periods 11-20 as shown in the table, which of these two methods has the greater accuracy if MAD and MSE are used? t= 11,12,13,14,15,16,17,18, 19, 20. Units Sold 146, 146, 148, 144, 153, 149, 154, 157, 162, 166. What is the MSE (Naive) and MSE (Linear)?

Explanation / Answer

MSE:48.5

MAD:5.9

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