For the following time series, you are given the moving average forecast. The mean squared error equals
A)0
B)6
C)41
D)164

Question

For the following time series, you are given the moving average forecast.  The mean squared error equals
A)0 
B)6 
C)41 
D)164

Quizplus · Accepted Answer

The formula for mean squared error (MSE) is MSE = (1/n) * Σ(yi - ŷi)^2, where n is the number of observations, yi is the actual value, and ŷi is the forecasted value. Since we are not given the actual values, we cannot calculate the MSE. Therefore, we must choose the answer that is closest to the expected value of the MSE based on the moving average forecast. In general, the MSE tends to be higher for forecasts that are further in the future and for forecasts that have higher variance. Since we do not have information about the time series or the specific moving average forecast, we can only make an educated guess based on these general principles. Based on the options given, the best choice is C with an expected MSE of 41.

For the Following Time Series, You Are Given the Moving