Consider the following time series data. Month 1 2 3 4 5 6 7 Value 23 12 21 11 20 24 14 (a) Compute MSE using the most recent value as the forecast for the next period. This way of forecasting would essentially be the same as 1-period moving average method.(Round your answer to two decimal places.) MSE = 22.56 What is the forecast for month 8? 18.33 (b) Compute MSE using the average of all the data available as the forecast for the next period. In this way of forecasting, the forecast for any time period is the same as the average of all data in the past up until right before that point in time. Therefore, instead of part of past data being relevant as in the moving average method, all past data is assumed to be relevant. (Round your answer to two decimal places.) MSE = 40.02 What is the forecast for month 8? (Round your answer to two decimal places.) 18.86 (c) Which method appears to provide the better forecast according to MSE? The method using the most recent value appears to be better since the MSE is smaller. The method using the average of all the data available appears to be better since the MSE is larger. The method using the most recent value appears to be better since the MSE is larger. The method using the average of all the data available appears to be better since the MSE is smaller.

Consider the following time series data. MSE=22.56 What is the forecast for month 8 ? of past data being relevant as in the moving average method, all past data is assumed to be relevant. (Round your answer to two decimal places.) MSE = What is the forecast for month 8 ? (Round your answer to two decimal places.) (c) Which method appears to provide the better forecast according to MSE? The method using the most recent value appears to be better since the MSE is smaller. The method using the average of all the data available appears to be better since the MSE is larger. The method using the most recent value appears to be better since the MSE is larger. The method using the average of all the data available appears to be better since the MSE is smaller. Consider the following time series data. MSE=22.56 What is the forecast for month 8 ? of past data being relevant as in the moving average method, all past data is assumed to be relevant. (Round your answer to two decimal places.) MSE = What is the forecast for month 8 ? (Round your answer to two decimal places.) (c) Which method appears to provide the better forecast according to MSE? The method using the most recent value appears to be better since the MSE is smaller. The method using the average of all the data available appears to be better since the MSE is larger. The method using the most recent value appears to be better since the MSE is larger. The method using the average of all the data available appears to be better since the MSE is smaller