Overview
Using the naïve method (most recent value) as the forecast for the next week, compute the following measures of forecast accuracy:
Mean absolute error (MAE)
Mean squared error (MSE)
Mean absolute percentage error (MAPE)
Round your answers to two decimal places.
MAE = fill in the blank 1
MSE = fill in the blank 2
MAPE = fill in the blank 3
Using the average of all the historical data as a forecast for the next period, compute the same three values. Round your answers to two decimal places.
MAE = fill in the blank 4
MSE = fill in the blank 5
MAPE = fill in the blank 6
Which method appears to provide the more accurate forecasts for the historical data?
Naïve method (most recent value)Average of all the historical data