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4 years ago

9

Develop a three-month moving average for this time series. Compute MSE and a forecast for month 8. If required, round your answe

rs to two decimal places. Do not round intermediate calculation.

1 answer:

Trava [24]4 years ago

4 0

Answer:

The missing Table is;

Month 1 2 3 4 5 6 7

Value 24 13 21 14 20 23 15

MSE = 20.56

Forecast = 19.33

Explanation:

<u>Table Formation</u>

Month Value Forecast Error Absolute Error Error Square

1 24

2 13

3 21

4 14 19.33333 -5.33333 5.333333 28.44444

5 20 16 4 4 16

6 23 18.33333 4.666667 4.666667 21.77778

7 15 19 -4 4 16

20.55

19.33

<u>Table Explanation</u>

In the above table, we first calculate the forecast column. A forecast is taken as the sum of the three entries in order and then taking out the average.

Error is calculated by subtracting the Actual value from the forecast value.

Then we take the absolute of the forecast value.

Then we take the square of the absolute of the forecasted values.

Now we calculate MSE as;

MSE = ( 28.44 + 16 + 21.78 + 16 ) / 4

<em>MSE = 20.56</em>

Forecast for 8th month = ( 20 + 23 + 15 ) / 3

Forecast for 8th month = 19.33

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