Two Forecasting Models Were Used to Predict the Future Values

question 44

Short Answer

Two forecasting models were used to predict the future values of a time series. The forecasts are shown below with the actual values.
Which model is the most accurate? Why?

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Definitions:

Relevant Range

The range of activity over which a company expects its operating assumptions, such as cost behavior and sales mix, to remain valid, influencing budgeting and financial planning.

Fixed Costs

Costs that do not vary with the level of production or business activity, remaining constant even when output changes.

Variable Cost

Expenses that change in proportion to the activity or volume of business.

Persons Served

A term often used in service delivery and nonprofit sectors to refer to the number of individuals who receive services or benefits from a program.