Sales for boxes of Girl Scout cookies over a 4-month period were forecasted as follows: 100, 120, 115, and 123.The actual results over the 4-month period were as follows: 110, 114, 119, 115.What was the MSE of the 4-month forecast?
A)0
B)5
C)7
D)54

Question

Quizplus · Accepted Answer

To find the MSE, we need to follow these steps:

1. Calculate the error for each month by subtracting the actual value from the forecasted value:

Month 1 Error = 100 - 110 = -10
Month 2 Error = 120 - 114 = 6
Month 3 Error = 115 - 119 = -4
Month 4 Error = 123 - 115 = 8

2. Square each error:

Month 1 Error^2 = (-10)^2 = 100
Month 2 Error^2 = 6^2 = 36
Month 3 Error^2 = (-4)^2 = 16
Month 4 Error^2 = 8^2 = 64

3. Average the squared errors:

MSE = (100 + 36 + 16 + 64) / 4 = 54

So, the MSE of the 4-month forecast was 54. Therefore, the best choice is D.

Sales for Boxes of Girl Scout Cookies Over a 4-Month