Question

Month 1 2 3 4 5 6 7

Value 25 14 19 12 19 24 15
A) Compute MSE using the most recent value as the forecast for the next period.
B) Compute MSE using the average of all the data available as the forecast for the next period.
C) Which method appears to provide the better forecast?

Answer 1

Following are the solution to this question:

Explanation:

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