Question

How do i solve C

Sales of Volkswagen's popular Beetle have grown steadily at auto dealerships in Nevada during the past 5 years (see table below). Year Sales 455 502 520 563 580 a) Forecasted sales for year 6 using the trend projection (linear regression) method are 617.3 sales (round your response to one decimal place). b) The MAD for a linear regression forecast is 6.8 sales (round your response to one decimal place). c) The MSE for the linear regression forecast is sales (round your response to one decimal place).

Answer 1

Please find solution below in the picture MSE is the square of Error(Sales minus Forecasting).So by taking average of MSE(each period),THe avg MSE for given data is 49.18

A H 1 Year Sales MSE Forecast(trend projection) MAD 455 461.8 Y = 430.7 + (31.1)*(x) 502 492.9 520 524 563 555.1 580 586.2 617.3 6.8 MAD=[Sales - Forecast] 9.1 4 von AWN- 46.24 MSE=square of MAD 82.81 16 62.41 38.44 7.9 6.2 6.8 Avg MAD=(6.8+9.1+4+7.9+6.2)/5 49.18 Avg MSE=(46.24+82.81+16+62.41+38.44)/5 91. Linear trend 10 Y = b + mx(where b = intercept and m = slope ) 11 Slope(m) 31.1 12 Intercept(b) 430.7 13