Decide between two different forecasting techniques/Operation Management
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 = 125 + 2.2t, 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 answers to 2 decimal places.)
t / Units Sold
11 /144
12 /145
13 / 150
14 / 143
15 / 157
16 / 152
17 / 156
18 / 154
19 / 159
20 / 164
MAD (Naive) ________
MAD (Linear) ________
MSE (Naive) ________
MSE (Linear) ________
(linear trend of naive method) provides forecasts with less average error and less average squared error.
