Use the following to answer questions
A researcher is interested in forecasting the house price index in Country Z. The observed price index values from 1996 to 2000 are 101, 103 104, 107 and 111. The researcher uses two different forecasting models, A and B. The forecasts for the price index using Model A are 100.5, 102.4, 103.2, 106 and 111 whilst the forecast using Model B are 100.8, 102.2, 104, 104.2 and 112.1.
-What are the closest to the mean squared errors for model A and B's forecasts?
A) 0.58 and 0.98, respectively
B) 0.98 and 0.58, respectively
C) 0.45 and 1.95, respectively
D) 1.95 and 0.45, respectively

Question

Quizplus · Accepted Answer

The Answer of Use the following to answer questions
A researcher is interested in forecasting the house price index in Country Z. The observed price index values from 1996 to 2000 are 101, 103 104, 107 and 111. The researcher uses two different forecasting models, A and B. The forecasts for the price index using Model A are 100.5, 102.4, 103.2, 106 and 111 whilst the forecast using Model B are 100.8, 102.2, 104, 104.2 and 112.1.
-What are the closest to the mean squared errors for model A and B's forecasts?
A) 0.58 and 0.98, respectively
B) 0.98 and 0.58, respectively
C) 0.45 and 1.95, respectively
D) 1.95 and 0.45, respectively

Use the Following to Answer Questions