Consider the following time series data. Month 1 2 3 4 5 6 7 Value 22 11 18 10 17 21 13 (a) Compute MSE using the most recent value as the forecast for the next period. MSE = What is the forecast for month 8? (b) Compute MSE using the average of all the data available as the forecast for the next period. (Round your answer to two decimal places.) MSE = What is the forecast for month 8? (c) Which method appears to provide the better forecast? O The most recent value provides a better forecast, because its MSE is smaller than the MSE using the average of all the previous values. O The average of all the previous values provides a better forecast, because its forecast for month 8 is larger than the month 8 forecast using the most recent value. O The average of all the previous values provides a better forecast, because its MSE is smaller than the MSE using the most recent value. O The most recent value provides a better forecast, because its forecast for month 8 is smaller than the month 8 forecast using the average of all the previous values.
Consider the following time series data. Month 1 2 3 4 5 6 7 Value 22 11 18 10 17 21 13 (a) Compute MSE using the most recent value as the forecast for the next period. MSE = What is the forecast for month 8? (b) Compute MSE using the average of all the data available as the forecast for the next period. (Round your answer to two decimal places.) MSE = What is the forecast for month 8? (c) Which method appears to provide the better forecast? O The most recent value provides a better forecast, because its MSE is smaller than the MSE using the average of all the previous values. O The average of all the previous values provides a better forecast, because its forecast for month 8 is larger than the month 8 forecast using the most recent value. O The average of all the previous values provides a better forecast, because its MSE is smaller than the MSE using the most recent value. O The most recent value provides a better forecast, because its forecast for month 8 is smaller than the month 8 forecast using the average of all the previous values.
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.3: The Natural Exponential Function
Problem 40E
Related questions
Question
Transcribed Image Text:Consider the following time series data.
Month
1
2
3
4
5
6
Value
22
11
18
10
17
21
13
(a) Compute MSE using the most recent value as the forecast for the next period.
MSE =
What is the forecast for month 8?
(b) Compute MSE using the average of all the data available as the forecast for the next period. (Round your answer to two decimal places.)
MSE =
What is the forecast for month 8?
(c) Which method appears to provide the better forecast?
O The most recent value provides a better forecast, because its MSE is smaller than the MSE using the average of all the previous values.
O The average of all the previous values provides a better forecast, because its forecast for month 8 is larger than the month 8 forecast using the most recent value.
O The average of all the previous values provides a better forecast, because its MSE is smaller than the MSE using the most recent value.
O The most recent value provides a better forecast, because its forecast for month 8 is smaller than the month 8 forecast using the average of all the previous values.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage