Question 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 Click here for the Excel Data File

Most accurate method = linear Trend equation model linear trend equation and naive approach are two type of forecasting method where linear trend equation considering a sequential direction for the flow of demand and naive approach is a method where previous actual demand considering as these periods demand. Based on given dataset,we can calculate the MAD and MSE and identify which method is more accurate. Period Actual demand Forecasting demand using Linear trend equation Absolute value of error Error2   Forecasting demand using naive approach Absolute value of error Error2 11 143 142.9 (122+1.9*11) 0.1 (143-142.9) 0.01     u200bu200b     12 149 144.8 4.2 17.64   143 6 36 13 152 146.7 5.3 28.09   149 3 9 14 145 148.6 3.6 12.96   152 7 49 15 155 150.5 4.5 20.25   145 10 100 16 152 152.4 0.4 0.16   155 3 9 17 154 154.3 0.3 0.09   152 2 4 18 159 156.2 2.8 7.84   154 5 25 19 159 158.1 0.9 0.81   159 0 0 20 162 160 2 4   159 3 9 Total     24.1 91.85     39 241 Based on the above table, we can calculate the MAD and MSE like given below. Linean trend Model\begin{aligned}\text { MAD } & =\frac{\text { sum tohal of absolute erroes }}{\text { No of errors }} \\& =\frac{24.1}{10}=2.41\end{aligned}\begin{aligned}\text { MSE } & =\frac{\text { bur tolal of Mean squied errors }}{\text { Mo. of erroes }} \\& =\frac{91.85}{10}=9.16\end{aligned}Naive Approach\text { MAD }=\frac{39}{8}=4.875=4.88Here, we have 8 errols, No earon in period 19 & No foreast demand fol 11 .\text { MSE }=\frac{241}{8}=30.125=30.13 Based on the identified the MAD and MSE for each method, we recognized that the liner trend projection method is more accurate when considering the low variation in MAD and MSE. Here, linear trend model facilitate MAD as 2.41 and MSE as 9.16. Similarly, naive approach providing MAD as 4.88 and MSE as 30.13. We know that the lowest value in MSE and MAD is better so we choose linear trend equation method as error free method. ...