(Solution) - Using the data from exercise 23 estimate a a linear -(2025 Original AI-Free Solution)
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Using the data from exercise 23, estimate (a) a linear trend model with seasonal dummies, and (b) an exponential trend model with seasonal dummies. Which of the two models has a lower MSE and MAD? Use the appropriate model to make forecasts for the next two months.
Data From Exercise 23
Year.............. Month............. Sales
1 .......................Jan.............. 345
1 .......................Feb............. 322
? ...........................?...................... ?
5....................... Dec......... 10,745