Conclusion and Comparing Results Sample Clauses

Conclusion and Comparing Results. In this chapter we generated forecast for consumption of steel in Norway in 2010 based on the historical data from 1997 to 2006. We implemented two approaches: moving average and linear regression. A brief review of methods was described. The challenge to make a forecast was the lack of data for years 2007-2008. Therefore, we decided to assume the forecasted values for 2007-2009 as the real data. The results of forecasts are summed up in the table below: Forecasted Year Moving average 3- period Moving average 5- period Linear Regression 2010 1593.33 1564.8 1343.92 Table 9-6 Forecasting results by moving average and linear regression Type of Error Moving average 3- period Moving average 5- period Least Square Method MAD 152.53 157.35 198.66 MSE 56033.13 53983.35 58446.35 MAPE 10.45% 9.86% 13.20% Based on MAPE results we will recommend the moving average 5-period method as the most accurate forecasting technique in this case. Thus, the estimation of steel demand in Norway for 2010 is 1564.8 thousands of metric tons which mean 1,564,800 tons.
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