Calculate the measures of forecast error using the naive (most recent value) method and the average of historical data (to 2 decimals).

Consider the following time series data.

Week	1	2	3	4	5	6
Value	18	13	17	11	17	15

	Naive method	Historical data
Mean absolute error
Mean squared error
Mean absolute percentage error

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Consider the following time series data.

Month	1	2	3	4	5	6	7
Value	23	14	19	10	18	23	26

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 8 ?

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 8 ?

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Expert Solution

milcah answered 2 years ago

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