Consider the following time series data. Month 1 2 3 4 5 6 7 Value 22 11 18 10 17 21 13 (a) Compute MSE using the most recent value as the forecast for the next period. MSE = What is the forecast for month 8? (b) Compute MSE using the average of all the data available as the forecast for the next period. (Round your answer to two decimal places.) MSE = What is the forecast for month 8? (c) Which method appears to provide the better forecast? O The most recent value provides a better forecast, because its MSE is smaller than the MSE using the average of all the previous values. O The average of all the previous values provides a better forecast, because its forecast for month 8 is larger than the month 8 forecast using the most recent value. O The average of all the previous values provides a better forecast, because its MSE is smaller than the MSE using the most recent value. O The most recent value provides a better forecast, because its forecast for month 8 is smaller than the month 8 forecast using the average of all the previous values.
Consider the following time series data. Month 1 2 3 4 5 6 7 Value 22 11 18 10 17 21 13 (a) Compute MSE using the most recent value as the forecast for the next period. MSE = What is the forecast for month 8? (b) Compute MSE using the average of all the data available as the forecast for the next period. (Round your answer to two decimal places.) MSE = What is the forecast for month 8? (c) Which method appears to provide the better forecast? O The most recent value provides a better forecast, because its MSE is smaller than the MSE using the average of all the previous values. O The average of all the previous values provides a better forecast, because its forecast for month 8 is larger than the month 8 forecast using the most recent value. O The average of all the previous values provides a better forecast, because its MSE is smaller than the MSE using the most recent value. O The most recent value provides a better forecast, because its forecast for month 8 is smaller than the month 8 forecast using the average of all the previous values.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
![Consider the following time series data.
| Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|-------|----|----|----|----|----|----|----|
| Value | 22 | 11 | 18 | 18 | 10 | 17 | 21 | 13 |
**(a)** Compute MSE using the most recent value as the forecast for the next period.
- MSE = [blank]
- What is the forecast for month 8? [blank]
**(b)** Compute MSE using the average of all the data available as the forecast for the next period. (Round your answer to two decimal places.)
- MSE = [blank]
- What is the forecast for month 8? [blank]
**(c)** Which method appears to provide the better forecast?
- [ ] The most recent value provides a better forecast, because its MSE is smaller than the MSE using the average of all the previous values.
- [ ] The average of all the previous values provides a better forecast, because its forecast for month 8 is larger than the month 8 forecast using the most recent value.
- [ ] The average of all the previous values provides a better forecast, because its MSE is smaller than the MSE using the most recent value.
- [ ] The most recent value provides a better forecast, because its forecast for month 8 is smaller than the month 8 forecast using the average of all the previous values.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F358923dd-976b-4983-a367-bafd3b4b55c1%2Faa97cef9-7f1d-4166-800d-6a771c7381d9%2Fck0tb97_processed.png&w=3840&q=75)
Transcribed Image Text:Consider the following time series data.
| Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|-------|----|----|----|----|----|----|----|
| Value | 22 | 11 | 18 | 18 | 10 | 17 | 21 | 13 |
**(a)** Compute MSE using the most recent value as the forecast for the next period.
- MSE = [blank]
- What is the forecast for month 8? [blank]
**(b)** Compute MSE using the average of all the data available as the forecast for the next period. (Round your answer to two decimal places.)
- MSE = [blank]
- What is the forecast for month 8? [blank]
**(c)** Which method appears to provide the better forecast?
- [ ] The most recent value provides a better forecast, because its MSE is smaller than the MSE using the average of all the previous values.
- [ ] The average of all the previous values provides a better forecast, because its forecast for month 8 is larger than the month 8 forecast using the most recent value.
- [ ] The average of all the previous values provides a better forecast, because its MSE is smaller than the MSE using the most recent value.
- [ ] The most recent value provides a better forecast, because its forecast for month 8 is smaller than the month 8 forecast using the average of all the previous values.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman