In: Statistics and Probability
Instructions |
The Data contains the actual values for 12 periods (listed in order, 1-12). In Excel, create forecasts for periods 6-13 using each of the following methods: linear regression with the equation based on all 12 periods; and quadratic regression with the equation based on all 12 periods. Round all numerical answers to two decimal places. |
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Data
The actual values for 12 periods (shown in order) are:
(1) 45 (2) 52 (3) 48 (4) 59 (5) 55 (6) 54 (7) 64 (8) 58 (9) 67 (10) 66 (11) 70 (12) 76
Questions
d) With linear regression, the forecast for period 13 will be:
e) With quadratic regression, the forecast for period 13 will be:
f) Considering only the forecasts for period 6-12, what is the lowest MAD value for any of the methods?
d) Forecast is 75.14 for linear regression
e) Forecast is 77.18 for quadratic regression
f) MAD(linear)=2.81, MAD(Quadratic)=2.68
The lowest MAD value is 2.68, which corresponds to quadratic regression.