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 = 123 + 1.8t, 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	146
13	152
14	142
15	154
16	152
17	155
18	155
19	159
20	165

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

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

Answer 1