Question

In: Statistics and Probability

Consider the following time series data. Month 1 2 3 4 5 6 7 Value 22...

Consider the following time series data.

Month 1 2 3 4 5 6 7
Value 22 13 18 11 19 22 14

Round your answers to two decimal places.

a. Compute MSE using the most recent value as the forecast for the next period.

Mean squared error is

What is the forecast for month ?

b. Compute MSE using the average of all data available as the forecast for the next period.

Mean squared error is

What is the forecast for month ?

c. Which method appears to provide the better forecast?

- Select your answer -The average of all data availableThe most recent valueItem 5

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