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 F_t = 122 + 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	Units Sold
11	143
12	149
13	152
14	145
15	155
16	152
17	154
18	159
19	159
20	162

MAD (Naive)
MAD (Linear)
MSE (Naive)
MSE (Linear)

(Click to select)  Linear trend  Naive method  provides forecasts with less average error and less average squared error.

Answer 1