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, 2-day moving average and naïve forecasts. Calculate the MAD and MSE for each of the three types of forecasts. Which is the best?

Question

Quizplus · Accepted Answer

The Answer is MAD (4-Period MA) = 1.59
MAD (2-Period MA) = 1.31
MAD (Naïve) = 1.12
MSE (4-Period MA) = 2.87
MSE (2-Period MA) = 1.95
MSE (Naïve) = 1.81
The Naïve method is best.

The Table Below Shows the Actual Closing Daily Stock Prices