Question

Problem 15-03 (Algorithmic)

Consider the following time series data.

Week	1	2	3	4	5	6
Value	18	14	16	11	17	13

Using the naïve method (most recent value) as the forecast for the next week, compute the following measures of forecast accuracy:

1. Mean absolute error (MAE)
2. Mean squared error (MSE)
3. Mean absolute percentage error (MAPE)

Round your answers to two decimal places.

MAE =

MSE =

MAPE =

Using the average of all the historical data as a forecast for the next period, compute the same three values. Round your answers to two decimal places.

MAE =

MSE =

MAPE =

Which method appears to provide the more accurate forecasts for the historical data?

Explain.

The input in the box below will not be graded, but may be reviewed and considered by your instructor.

Answer 1

As per Chegg's guidelines, we are required to do only the first full part of a question so do not downvote for the same reason.