BAD 376 PROBLEM ANALYSIS: FORECASTING QUESTION 1 In order to forecast the stock price of Target, a financial analyst used two different forecasting methods: method 1 and method 2. The results are summarized in the following table: Method 1 Method 2 Year Actual Value Forecast Value Year Actual Value Forecast Value 2022 100 98 2022 100 99 2023 110 105 2023 110 104 2024 115 118 2024 115 117 1. For each method compute the mean square error (MSE). 2. Which forecasting method would you recommend? Why? QUESTION 2 The following table contains yearly data on the price of beef from 2022 to 2024: Price of beef Year 2022 2023 2024 ($/Kg) 4 8 12 Forecast the price of beef for 2025 and 2026 using the simple linear trend model.
BAD 376 PROBLEM ANALYSIS: FORECASTING QUESTION 1 In order to forecast the stock price of Target, a financial analyst used two different forecasting methods: method 1 and method 2. The results are summarized in the following table: Method 1 Method 2 Year Actual Value Forecast Value Year Actual Value Forecast Value 2022 100 98 2022 100 99 2023 110 105 2023 110 104 2024 115 118 2024 115 117 1. For each method compute the mean square error (MSE). 2. Which forecasting method would you recommend? Why? QUESTION 2 The following table contains yearly data on the price of beef from 2022 to 2024: Price of beef Year 2022 2023 2024 ($/Kg) 4 8 12 Forecast the price of beef for 2025 and 2026 using the simple linear trend model.
MATLAB: An Introduction with Applications
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Chapter1: Starting With Matlab
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Question
![BAD 376
PROBLEM ANALYSIS: FORECASTING
QUESTION 1
In order to forecast the stock price of Target, a financial analyst used two different
forecasting methods: method 1 and method 2. The results are summarized in the
following table:
Method 1
Method 2
Year Actual Value
Forecast Value Year
Actual Value
Forecast Value
2022
100
98
2022
100
99
2023
110
105
2023
110
104
2024
115
118
2024
115
117
1. For each method compute the mean square error (MSE).
2. Which forecasting method would you recommend? Why?
QUESTION 2
The following table contains yearly data on the price of beef from 2022 to 2024:
Price of beef
Year
2022
2023
2024
($/Kg)
4
8
12
Forecast the price of beef for 2025 and 2026 using the simple linear trend model.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1caaff6-45fa-453e-9395-70c13e54ad26%2F74ce6b00-a1a5-4481-a673-3323492dcae7%2Fohuhgt9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:BAD 376
PROBLEM ANALYSIS: FORECASTING
QUESTION 1
In order to forecast the stock price of Target, a financial analyst used two different
forecasting methods: method 1 and method 2. The results are summarized in the
following table:
Method 1
Method 2
Year Actual Value
Forecast Value Year
Actual Value
Forecast Value
2022
100
98
2022
100
99
2023
110
105
2023
110
104
2024
115
118
2024
115
117
1. For each method compute the mean square error (MSE).
2. Which forecasting method would you recommend? Why?
QUESTION 2
The following table contains yearly data on the price of beef from 2022 to 2024:
Price of beef
Year
2022
2023
2024
($/Kg)
4
8
12
Forecast the price of beef for 2025 and 2026 using the simple linear trend model.
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