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Answer:
a. MSE = 64.8
b. Forecast for month 8 is 14.
Step-by-step explanation:
where
Using the most recent value as the forecast for the next period, we have forecasts for the months as;
(1,-) , (2,25) , (3,13) , (4,21) , (5,13) , (6,20) , (7,22)
= (-, -12, 8, -8, 7, 2, -8, -)
= (-, 144, 64, 64, 49, 4, 64, -)
Therefore, MSE = 64.8 (1 decimal place).
The Forecast for month 8 is 14 since we are using the most recent value as the forecast for the next period.