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
F* _{t}* = 124+ 2.1

t |
Units Sold |

11 | 148 |

12 | 149 |

13 | 148 |

14 | 145 |

15 | 153 |

16 | 152 |

17 | 152 |

18 | 159 |

19 | 161 |

20 | 165 |

MAD (Naive) | |

MAD (Linear) | |

MSE (Naive) | |

MSE (Linear) |

Provide forecasts with less average error and less average squared error.

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Answer: Data using Linear trend forecasting approach:   Excel working of Linear trend forecasting is as under:   Data using Naïve forecasting approach:   Excel working of Naïve forecasting is as under:     The final answers are: MAD (Naive) 3.00 MAD (Linear) 3.53 MSE (Naive) 16.11 MSE (Linear) 19.65   Conclusion: Naïve forecasting is having greater accuracy if MAD and MSE are used. ...