An analyst must decide between two different forecastingtechniques for weekly sales of roller blades: a linear trendequation and the naive approach. The linear trend equation isFt = 124 + 2.1t, and it was developedusing data from periods 1 through 10. Based on data for periods 11through 20 as shown in the table, which of these two methods hasthe greater accuracy if MAD and MSE are used? (Round yourintermediate calculations and final answers to 2 decimalplaces.)
t | Units Sold |
11 | 144 |
12 | 146 |
13 | 152 |
14 | 142 |
15 | 152 |
16 | 149 |
17 | 152 |
18 | 154 |
19 | 157 |
20 | 164 |
|
| |
MAD (Naive) | |
MAD (Linear) | |
MSE (Naive) | |
MSE (Linear) | |
|
(Click to select)  Linear trend  Naivemethod  provides forecasts with less average error andless average squared error.