The table below shows the actual closing daily stock prices for Kyocera Corporation for September 2 through September 5, 2008, as well as 4-day moving average and naïve forecasts.The MAD for the Naïve method is 1.22.What is the MAD for the 4-period MA and how does it compare with the Naïve?

A)MAD (4-Period MA) is 1.59; the Naïve method is better.
B)MAD (4-Period MA) is 1.59; the Naïve method is worse.
C)MAD (4-Period MA) is 1.81; the Naïve method is better.
D)MAD (4-Period MA) is 1.01; the Naïve method is worse.
E)MAD (4-Period MA) is 2.87; the Naïve method is worse.

Question

The table below shows the actual closing daily stock prices for Kyocera Corporation for September 2 through September 5, 2008, as well as 4-day moving average and naïve forecasts.The MAD for the Naïve method is 1.22.What is the MAD for the 4-period MA and how does it compare with the Naïve?

A)MAD (4-Period MA) is 1.59; the Naïve method is better.
B)MAD (4-Period MA) is 1.59; the Naïve method is worse.
C)MAD (4-Period MA) is 1.81; the Naïve method is better.
D)MAD (4-Period MA) is 1.01; the Naïve method is worse.
E)MAD (4-Period MA) is 2.87; the Naïve method is worse.

Quizplus · Accepted Answer

The Answer of The table below shows the actual closing daily stock prices for Kyocera Corporation for September 2 through September 5, 2008, as well as 4-day moving average and naïve forecasts.The MAD for the Naïve method is 1.22.What is the MAD for the 4-period MA and how does it compare with the Naïve?

A)MAD (4-Period MA) is 1.59; the Naïve method is better.
B)MAD (4-Period MA) is 1.59; the Naïve method is worse.
C)MAD (4-Period MA) is 1.81; the Naïve method is better.
D)MAD (4-Period MA) is 1.01; the Naïve method is worse.
E)MAD (4-Period MA) is 2.87; the Naïve method is worse.

The Table Below Shows the Actual Closing Daily Stock Prices