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Consider the following time series data: Month 1 2 3 4 5 6 7 Value 24 14 21 12 20 22 15 (a) Compute MSE
Consider the following time series data:
| Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Value | 24 | 14 | 21 | 12 | 20 | 22 | 15 |
| (a) | Compute MSE using the most recent value as the forecast for the next period. |
| If required, round your answer to one decimal place. | |
| What is the forecast for month 8? | |
| If required, round your answer to one decimal place. Do not round intermediate calculation. | |
| (b) | Compute MSE using the average of all the data available as the forecast for the next period. |
| If required, round your answer to one decimal place. Do not round intermediate calculation. | |
| What is the forecast for month 8? | |
| If required, round your answer to one decimal place. | |
| (c) | Which method appears to provide the better forecast? |
| - Select your answer -NaveAll data average |
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Authors: Robert S. Witte, John S. Witte
11th Edition
1119254515, 978-1119254515
