Linear trend equation and naive approach

Assignment Help Operation Management

Reference no: EM132188802

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 = 122 + 1.9t, 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 12 149 13 152 14 145 15 155 16 152 17 154 18 159 19 159 20 162 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.

Reference no: EM132188802

Questions Cloud

Linear regression in forecasting future conditions : Most businesses use some form of linear regression in forecasting future conditions. Do you feel that this is a valid method of estimating future conditions?

How does it provide opportunity for law enforcement : What is this tension about, and how does it provide an opportunity for law enforcement?

Implementing additional queues to avoid overloaded system : The manager is thinking of implementing additional queues to avoid an overloaded system. What is the minimum number of additional queues required?

Explain the importance of leadership in both groups : Compare and contrast formal groups and informal groups and explain the importance of leadership in both groups.

Linear trend equation and naive approach : An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trend equation and the naive approach.

Controlling gang violence and recruitment in prisons : What ideas do you have for controlling gang violence and recruitment in prisons?

What is the importance of having project manager : What is the importance of having a project manager? What type of diversification or vertical integration does AFLAC Inc use for growth or brand recognition?

Resigning from the position of administrative assistant : Imagine you are resigning from the position of administrative assistant. Write a resignation letter to the CEO giving the reason for resigning from the position

Identify someone you think is excellent speaker : Identify someone you think is an excellent speaker. List any four qualities that person possesses that make him or her effective speaker.

User Account

All Pages