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For a set of time series data, the following measures of forecast accuracy were found using the naive method as the forecast for the next period. MAE = 4.00 MSE = 18.00 MAPE 27.81% = For the same time series data, the following measures of forecast accuracy were found using the average of all the historical data as the forecast for the next period. MAE = 2.56 MSE = 7.80 MAPE 18.33% Which method, the naive method or using the average of all the historical data, appears to provide the more accurate forecasts for the historical data? Explain. O Using the naive method appears to provide more accurate forecasts, because MAE, MSE, and MAPE using that method are all lower than MAE, MSE, and MAPE using the average of all the historical data. O Using the average of all the historical data appears to provide more accurate forecasts, because MAE, MSE, and MAPE using that method are all lower than MAE, MSE, and MAPE using the naive method. O Using the average of all the historical data appears to provide more accurate forecasts, because MAE, MSE, and MAPE using that method are all higher than MAE, MSE, and MAPE using the naive method. O Using the naive method appears to provide more accurate forecasts, because MAE, MSE, and MAPE using that method are all higher than MAE, MSE, and MAPE using the average of all the historical data. Type here to search #3 HE W E R L W zoom 10 8 F H J 3:36 PM 72°F ^ 5/9/2024 10

For a set of time series data, the following measures of forecast accuracy were found using the naive method as the forecast for the next period. MAE = 4.00 MSE = 18.00 MAPE 27.81% = For the same time series data, the following measures of forecast accuracy were found using the average of all the historical data as the forecast for the next period. MAE = 2.56 MSE = 7.80 MAPE 18.33% Which method, the naive method or using the average of all the historical data, appears to provide the more accurate forecasts for the historical data? Explain. O Using the naive method appears to provide more accurate forecasts, because MAE, MSE, and MAPE using that method are all lower than MAE, MSE, and MAPE using the average of all the historical data. O Using the average of all the historical data appears to provide more accurate forecasts, because MAE, MSE, and MAPE using that method are all lower than MAE, MSE, and MAPE using the naive method. O Using the average of all the historical data appears to provide more accurate forecasts, because MAE, MSE, and MAPE using that method are all higher than MAE, MSE, and MAPE using the naive method. O Using the naive method appears to provide more accurate forecasts, because MAE, MSE, and MAPE using that method are all higher than MAE, MSE, and MAPE using the average of all the historical data. Type here to search #3 HE W E R L W zoom 10 8 F H J 3:36 PM 72°F ^ 5/9/2024 10

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 23PPS
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For a set of time series data, the following measures of forecast accuracy were found using the naive method as the forecast for the next period. MAE = 4.00 MSE = 18.00 MAPE 27.81% = For the same time series data, the following measures of forecast accuracy were found using the average of all the historical data as the forecast for the next period. MAE = 2.56 MSE = 7.80 MAPE 18.33% Which method, the naive method or using the average of all the historical data, appears to provide the more accurate forecasts for the historical data? Explain. O Using the naive method appears to provide more accurate forecasts, because MAE, MSE, and MAPE using that method are all lower than MAE, MSE, and MAPE using the average of all the historical data. O Using the average of all the historical data appears to provide more accurate forecasts, because MAE, MSE, and MAPE using that method are all lower than MAE, MSE, and MAPE using the naive method. O Using the average of all the historical data appears to provide more accurate forecasts, because MAE, MSE, and MAPE using that method are all higher than MAE, MSE, and MAPE using the naive method. O Using the naive method appears to provide more accurate forecasts, because MAE, MSE, and MAPE using that method are all higher than MAE, MSE, and MAPE using the average of all the historical data. Type here to search #3 HE W E R L W zoom 10 8 F H J 3:36 PM 72°F ^ 5/9/2024 10
Transcribed Image Text:For a set of time series data, the following measures of forecast accuracy were found using the naive method as the forecast for the next period. MAE = 4.00 MSE = 18.00 MAPE 27.81% = For the same time series data, the following measures of forecast accuracy were found using the average of all the historical data as the forecast for the next period. MAE = 2.56 MSE = 7.80 MAPE 18.33% Which method, the naive method or using the average of all the historical data, appears to provide the more accurate forecasts for the historical data? Explain. O Using the naive method appears to provide more accurate forecasts, because MAE, MSE, and MAPE using that method are all lower than MAE, MSE, and MAPE using the average of all the historical data. O Using the average of all the historical data appears to provide more accurate forecasts, because MAE, MSE, and MAPE using that method are all lower than MAE, MSE, and MAPE using the naive method. O Using the average of all the historical data appears to provide more accurate forecasts, because MAE, MSE, and MAPE using that method are all higher than MAE, MSE, and MAPE using the naive method. O Using the naive method appears to provide more accurate forecasts, because MAE, MSE, and MAPE using that method are all higher than MAE, MSE, and MAPE using the average of all the historical data. Type here to search #3 HE W E R L W zoom 10 8 F H J 3:36 PM 72°F ^ 5/9/2024 10
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