The following time series data show the number of lightning strikes in a particular county for the most recent seven months.Month 1 2 3 4 5 6 7Value27 16 23 15 22 26 18(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 twodecimal places.)MSE =What is the forecast for month 8?(c) Which method appears to provide the better forecast?● The average of all the previous values provides a better forecast, because its MSE is smaller than the MSE using themost recent value.O The average of all the previous values provides a better forecast, because its forecast for month 8 is larger than themonth 8 forecast using the most recent value.The most recent value provides a better forecast, because its MSE is smaller than the MSE using the average of all theprevious values.The most recent value provides a better forecast, because its forecast for month 8 is smaller than the month 8forecast using the average of all the previous values.

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Answered: The following time series data show the…

Practical Management Science

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ISBN:9781337406659

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Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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The following time series data show the number of lightning strikes in a particular county for the most recent seven months. Month 1 2 3 4 5 6 7 Value 27 16 23 15 22 26 18 (a) Compute MSE using the most recent value as the forecast for the next period.