Purchase Solution

Naive Forecasting

Not what you're looking for?

Ask Custom Question

Naive Forecasting

Complete the table, then determine the MAD and MSE. What is your forecast for Week 13?
(Some of the values have been filled in for you to help with your calculations.)
McCray Enterprise: Weekly closing price per share

Week Price Forecast Residuals ABS SQUARED
t yt Ft yt - Ft lyt - Ft l (yt - Ft )2

1 80.00 No Forecast

2 80.50 80.00 0.5 0.5 0.25

3 81.00

4 80.25 81.00 -.75 0.75 .5625

5 81.50

6 82.00

7 80.50 82.00 -1.5 1.5 2.25

8 81.00

9 82.50

10 83.00

11 80.50

12 81.00

 lyt - Ft l  (yt - Ft )2

1.) Mean Absolute Deviation =  lyt- Ftl
11

2) Mean Squared Error = (yt - Ft)2
11

3) Forecast for Week 13 =

Attachments
Purchase this Solution

Solution Summary

The expert examines Naive forecasting. The table is complete and MAD and MSE are used.

Solution provided by:
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
Recent Feedback
  • "Your explanation to the answers were very helpful."
  • "What does 1 and 0 means in the repair column?"
  • "Went through all of the formulas, excellent work! This really helped me!"
  • "try others as well please"
  • "Thank you, this helped a lot. I was not sure how to plug in those numbers to a formula. This was a great help. Now I have to figure out how to explain cost of capital is used in net present value analysis, and how cost of capital is used in net present value analysis. This stuff gets confusing."
Purchase this Solution


Free BrainMass Quizzes
Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.