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The monthly sales revenue (in hundreds of dollars) of a company for one year is listed below. Month Sales ($100s) January 12,354 February 13,657 March

The monthly sales revenue (in hundreds of dollars) of a company for one year is listed below.

Month Sales ($100s)
January 12,354
February 13,657
March 14,536
April 13,478
May 16,590
June 19,790
July 17,987
August 18,657
September 19,765
October 18,678
November 20,678
December 23,675

a. Compute MSE using the most recent value as the forecast for the next period. What is the forecast for the next month? b. Compute MSE using the average of all the data available as the forecast for the next period. What is the forecast for the next month?

c. Which method appears to provide the better forecast?

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