SCENARIO 16-10 Business closures in a city in the western U.S.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:
-Referring to Scenario 16-10, the values of the MAD for the two models indicate that the first-order model should be used for forecasting.

Question

SCENARIO 16-10 Business closures in a city in the western U.S.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: 
-Referring to Scenario 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 Mean Absolute Deviation (MAD) is used to measure the accuracy of a model's forecasts. A lower MAD value indicates a more accurate model. Without specific MAD values for the two models, we cannot determine which model should be used for forecasting.

SCENARIO 16-10 Business Closures in a City in the Western