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Use the sales data given below to determine
a)the least squares trend line
b)the predicted value for 2002 sales.
c) the MAD
d) the unadjusted forecasting MSE
sales
1995 130
1996 140
1997 152
1998 160
1999 169
2000 182
2001 194
2002 ?
A quality control inspector chooses a part to be tested. The part is then declared acceptable, repairable, or scrapped. Then another part is tested.
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When the more current observations are more relevant to estimate of next period than previous observations, the naive forecasting method to employ is
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