TABLE 16-10
Business closures in Laramie,Wyoming from 2007 to 2012 were: Microsoft Excel was used to fit both first-order and second-order autoregressive models,resulting in the following partial outputs:
SUMMARY OUTPUT - 2nd Order Model
Coefficients
Intercept -5.77
X Variable 1 0.80
X Variable 2 1.14
SUMMARY OUTPUT - 1st Order Model
Coefficients
Intercept -4.16
X Variable 1 1.59
-True or False: Referring to Table 16-10,the values of the MAD for the two models indicate that the first-order model should be used for forecasting.

Question

TABLE 16-10
Business closures in Laramie,Wyoming from 2007 to 2012 were:  Microsoft Excel was used to fit both first-order and second-order autoregressive models,resulting in the following partial outputs:
SUMMARY OUTPUT - 2nd Order Model
Coefficients
Intercept -5.77
X Variable 1 0.80
X Variable 2 1.14
SUMMARY OUTPUT - 1st Order Model
Coefficients
Intercept -4.16
X Variable 1 1.59
-True or False: Referring to Table 16-10,the values of the MAD for the two models indicate that the first-order model should be used for forecasting.

Quizplus · Accepted Answer

The statement cannot be evaluated as true or false without the actual data from Table 16-10. The Mean Absolute Deviation (MAD) values need to be compared to determine which model is more accurate.

TABLE 16-10 Business Closures in Laramie,Wyoming from 2007 to 2012 Were