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.

Comprehend the principles of liability recognition and measurement, including contingent liabilities and instalment payments.

Master the concepts related to the effective-interest method and its application in financial reporting.

Learn the accounting treatments for different types of loans and payables, including interest calculations and loan repayments.

Differentiate between financial and non-financial liabilities and their respective accounting treatment.

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Definitions:

Sellers

Individuals or entities that offer goods or services for sale to buyers.

Firm Offer

An offer in a contract that remains open and unchangeable for a specified period, giving the recipient time to consider and accept the offer without fear of withdrawal.

Air Conditioner Filters

Components in air conditioning systems designed to remove dust, pollen, and other particles from the air.

Risk of Loss

Refers to the possibility that an asset might be destroyed, damaged, or lost, causing financial loss to its owner.