Consider the following time series data: Month1234567Value24122011192416 (a)Compute MSE using the most recent value as the forecast for the next period. If required, round your answer to one decimal place. What is the forecast for month 8? If required, round your answer to one decimal place. Do not round intermediate calculation. (b)Compute MSE using the average of all the data available as the forecast for the next period. If required, round your answer to one decimal place. Do not round intermediate calculation. What is the forecast for month 8? If required, round your answer to one decimal place. (c)Which method appears to provide the better forecast? All Data average or Naiive

Month: {1,2,3,4,5,6,7} Value: {24,12,20,11,19,24,16} We have to calculate : MSE = sum(absolute…

Answered: Consider the following time series…

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter4: Linear Functions

Section4.3: Fitting Linear Models To Data

Problem 24SE: Table 6 shows the year and the number ofpeople unemployed in a particular city for several years....

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Question

Consider the following time series data:

Month	1	2	3	4	5	6	7
Value	24	12	20	11	19	24	16

(a)	Compute MSE using the most recent value as the forecast for the next period.
	If required, round your answer to one decimal place.

	What is the forecast for month 8?
	If required, round your answer to one decimal place. Do not round intermediate calculation.

(b)	Compute MSE using the average of all the data available as the forecast for the next period.
	If required, round your answer to one decimal place. Do not round intermediate calculation.

	What is the forecast for month 8?
	If required, round your answer to one decimal place.

(c)	Which method appears to provide the better forecast?
	All Data average or Naiive