Solution-Calculate the rmse and mad for years

Calculate the rmse and mad for years

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Reference no: EM133128386

Question 1. CoastCo Insurance is interested in developing a forecast of larceny thefts in the United States. Download the spreadsheet for the available data.

Year	Larcency Thefts*
1	8,151
2	8,348
3	9,263
4	9,978
5	10,271
6	9,906
7	9,983
8	10,578
9	11,137
10	11,194
11	11,143
12	10,713
13	10,592
14	10,926
15	11,257
16	11,500
17	11,706
18	11,872

*Data in thousands

Plot this series in a time series plot and make a naive forecast for years 2 through 19.
Plot actual and forecast values of the series for the years 1 through 19. (You will not have an actual value for year 19 or a forecast value for year 1.)
Calculate the RMSE and MAD for years 2 through 18. On the basis of these measures and what you see in the plot, what do you think of your forecast? Explain.

Reference no: EM133128386

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Calculate the rmse and mad for years

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