Consider the following time series data. Month 1 2 3 Value 4 5 6 7 21 29 25 30 26 25 30 (a) Compute MSE using the most recent value as the forecast for the next period. 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. What is the forecast for month 8? (c) Which method appears to provide the better forecast?
Consider the following time series data. Month 1 2 3 Value 4 5 6 7 21 29 25 30 26 25 30 (a) Compute MSE using the most recent value as the forecast for the next period. 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. What is the forecast for month 8? (c) Which method appears to provide the better forecast?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:Consider the following time series data.
Month 1 2
3
4
Value 21 29 25 30
5
26
6
25
7
30
(a) Compute MSE using the most recent value as the forecast for the next period. 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. What is the
forecast for month 8?
(c) Which method appears to provide the better forecast?
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