The monthly market shares of General Electric Company for 12 consecutive months follow. Develop three-month and four-month moving averages for this time series. Does the three-month or the four-month moving average provide the better forecasts based on MSE? Explain your reasoning.
$$\begin{array} { | c | c | }
\hline \text { Month } & \text { Market Shares } \
\hline 1 & 23.39 \
\hline 2 & 23.56 \
\hline 3 & 23.02 \
\hline 4 & 23.03 \
\hline 5 & 23.60 \
\hline 6 & 23.37 \
\hline 7 & 23.21 \
\hline 8 & 23.40 \
\hline 9 & 23.31 \
\hline 10 & 23.94 \
\hline 11 & 23.39 \
\hline 12 & 23.50 \
\hline
\end{array}$$

Question

The monthly market shares of General Electric Company for 12 consecutive months follow. Develop three-month and four-month moving averages for this time series. Does the three-month or the four-month moving average provide the better forecasts based on MSE? Explain your reasoning.
​​ $$\begin{array} { | c | c | } 
\hline \text { Month } & \text { Market Shares } \
\hline 1 & 23.39 \
\hline 2 & 23.56 \
\hline 3 & 23.02 \
\hline 4 & 23.03 \
\hline 5 & 23.60 \
\hline 6 & 23.37 \
\hline 7 & 23.21 \
\hline 8 & 23.40 \
\hline 9 & 23.31 \
\hline 10 & 23.94 \
\hline 11 & 23.39 \
\hline 12 & 23.50 \
\hline
\end{array}$$ ​
​

Quizplus · Accepted Answer

The Answer of The monthly market shares of General Electric Company for 12 consecutive months follow. Develop three-month and four-month moving averages for this time series. Does the three-month or the four-month moving average provide the better forecasts based on MSE? Explain your reasoning.
​​ $$\begin{array} { | c | c | } 
\hline \text { Month } & \text { Market Shares } \
\hline 1 & 23.39 \
\hline 2 & 23.56 \
\hline 3 & 23.02 \
\hline 4 & 23.03 \
\hline 5 & 23.60 \
\hline 6 & 23.37 \
\hline 7 & 23.21 \
\hline 8 & 23.40 \
\hline 9 & 23.31 \
\hline 10 & 23.94 \
\hline 11 & 23.39 \
\hline 12 & 23.50 \
\hline
\end{array}$$ ​
​

The Monthly Market Shares of General Electric Company for 12