Consider the following time series data: Month 1 2 3 4 5 6 7 Value 25 12 20 11 20 23 15 (a) Compute MSE using the most recent value as the forecast...

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AnsweraGivenlet us considerF1 be no forecastF2 A1 25F3 A2 12MonthActual value AForecastFError E AFError2 See Answer

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Other questions asked by students

(a)	Compute MSE using the most recent value as the forecast for thenext period.
	If required, round your answer to one decimal place.

	What is the forecast for month 8?
	If required, round your answer to one decimal place. Do notround intermediate calculation.

(b)	Compute MSE using the average of all the data available as theforecast for the next period.
	If required, round your answer to one decimal place. Do notround intermediate calculation.

	What is the forecast for month 8?
	If required, round your answer to one decimal place.

(c)	Which method appears to provide the better forecast? (Naiive or all data coverage)

Month	1	2	3	4	5	6	7
Value	25	12	20	11	20	23	15