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9. Exhibit 7 gives the actual change in the log of sales of Cisco Systems from 1Q 2019 to 4Q 2019, along with the forecasts
9. Exhibit 7 gives the actual change in the log of sales of Cisco Systems from 1Q 2019 to 4Q 2019, along with the forecasts from the regression model ln( Sales t)=0.0068+ 0.2633ln( Sales t1) estimated using data from 1Q 2001 to 4Q 2018. (Note that the observations after the fourth quarter of 2018 are out of sample.) YHIRIT 7 Chapter 9 Time-Series Analysis 513 A. Calculate the RMSE for the out-of-sample forecast errors. B. Compare the forecasting performance of the model given with that of another model having an out-of-sample RMSE of 2 percent
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