Consider the following time series data: Month 1 2 3 4 5 6 7 Value 24 13 20 12 19 23 15 Compute MSE using the most recent value as the forecast for the next period. What is the forecast for month 8? Compute MSE using the average of all the data available as the forecast for the next period. What is the forecast for month 8? Which method appears to provide the better forecast
Consider the following time series data: Month 1 2 3 4 5 6 7 Value 24 13 20 12 19 23 15 Compute MSE using the most recent value as the forecast for the next period. What is the forecast for month 8? Compute MSE using the average of all the data available as the forecast for the next period. What is the forecast for month 8? Which method appears to provide the better forecast
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter5: Business And Economic Forecasting
Section: Chapter Questions
Problem 2.1CE
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Question
Consider the following time series data:
Month |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
Value |
24 |
13 |
20 |
12 |
19 |
23 |
15 |
- Compute MSE using the most recent value as the
forecast for the next period. What is the forecast for month 8? - Compute MSE using the average of all the data available as the forecast for the next period. What is the forecast for month 8?
- Which method appears to provide the better forecast?
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