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Forecasting
A company has used three different methods to forecast sales for the past five months. Use MAD and MSE to evaluate the performance of the three methods.
(a) Which forecasting method performed best?
Period Actual Method A Method B Method C
1 10 10 9 8
2 8 11 10 11
3 12 12 8 10
4 11 13 12 11
5 12 14 11 12
MAD MSEMethod AMethod BMethod C
(b) Which of these is actually the naïve method? Method CMethod BMethod A
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