Two Forecasting Models Were Used to Predict the Future Values $F_{t}$

question 165

Essay

Two forecasting models were used to predict the future values of a time series.These are shown in the accompanying table,together with the actual values.
Forecast Value $F_{t}$ $\quad$ $\quad$ $\quad$ $\quad$ Actual Value $y_{t}$
$\begin{array}{cc|c}\text { Model 1 } & \text { Model } 2 & \\\hline 9.0 & 7.7 & 7.6 \\7.8 & 8.1 & 8.2 \\7.0 & 8.5 & 8.9 \\9.6 & 9.0 & 11.0\end{array}$ Compute the mean absolute deviation (MAD)and sum of squares for forecast (SSE)for each model to determine which was more accurate.

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Tax Rates

The percentage at which an individual or corporation is taxed by the government on income or profits.

Illegal Immigrant Workers

Individuals who are employed in another country without the legal authorization to do so, often facing precarious working conditions and low wages.

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Labor Productivity Growth

The increase in the amount of goods and services produced per unit of labor over a period of time.