Use the data given below to answer the following question(s).
The table below shows the industrial lathe sales from the years 2000-2005.The forecaster uses the regression method to determine the forecast for the future.
-For the data given above,what is the value of RMSE? [Hint: Round the forecast values to 3 decimal places.]
A)1,014,031.75
B)818.73
C)1,006.99
D)16.51

Question

Use the data given below to answer the following question(s).
The table below shows the industrial lathe sales from the years 2000-2005.The forecaster uses the regression method to determine the forecast for the future. 
-For the data given above,what is the value of RMSE? [Hint: Round the forecast values to 3 decimal places.]
A)1,014,031.75 
B)818.73 
C)1,006.99 
D)16.51

Quizplus · Accepted Answer

RMSE (Root Mean Square Error) measures the difference between actual and predicted values of the data. The formula for RMSE is Square Root of [(Σ(Predicted_Value - Actual_Value)^2)/n], where n is the number of data points. Using this formula, and rounding the forecast values to 3 decimal places, we get RMSE = 1,006.99. Therefore, the correct choice is C.

Use the Data Given Below to Answer the Following Question(s)