Two Forecasting Models Were Used to Predict the Future Values

question 14

Essay

Two forecasting models were used to predict the future values of a time series.The forecasts are shown below with the actual values: Calculate the mean absolute deviation (MAD)for Model 1.

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Definitions:

Bonds

Financial instruments representing loans made by investors to borrowers, typically governments or corporations, with an agreed-upon return.

Obligations

Obligations are duties or commitments legally or morally binding an individual or entity to act or refrain from acting in a certain manner.

Gunpowder

A mixture of saltpeter (potassium nitrate), sulfur, and charcoal (carbon) that when ignited, burns rapidly and is used as a propellant in firearms and as an explosive.