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In order to forecast the stock price of Google, a financial analyst used two different forecasting methods: an ARIMA method, and a GARCH method.
In order to forecast the stock price of Google, a financial analyst used two different forecasting methods: an ARIMA method, and a GARCH method. The results are summarized in the following table: ARIMA Method GARCH Method Year Actual Value Forecast Value Year Actual Value Forecast Value 2021 100 98 2021 100 99 2022 110 105 2022 110 104 2023 115 118 2023 115 116 For each method compute the following accuracy measures: 1. Mean square error (MSE) 2. Root-Mean-Squared Error (RMSE). Which forecasting method would you recommend? Why?
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Answer To compute the accuracy measures for each forecasting method we will calculate the Mean Squar...
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
