Consider the actual values Y and forecast values F given in the table below. $$\begin{array} { | c | c | c | }
\hline \text { Time Period } & \mathrm { Y } & \mathrm { F } \
\hline 1 & 19.5 & 19.3 \
\hline 2 & 21.5 & 20.9 \
\hline 3 & 22.6 & 22.5 \
\hline
\end{array}$$ Calculate the root mean squared error (RMSE) of the forecasts.
A) 0.90
B) 0.30
C) 0.37
D) 1.42

Question

Consider the actual values Y and forecast values F given in the table below. $$\begin{array} { | c | c | c | } 
\hline \text { Time Period } & \mathrm { Y } & \mathrm { F } \
\hline 1 & 19.5 & 19.3 \
\hline 2 & 21.5 & 20.9 \
\hline 3 & 22.6 & 22.5 \
\hline
\end{array}$$ Calculate the root mean squared error (RMSE) of the forecasts.
A) 0.90
B) 0.30
C) 0.37
D) 1.42

Quizplus · Accepted Answer

The RMSE is calculated as the square root of the average of the squared differences between actual and forecast values: RMSE = sqrt(((19.5-19.3)^2 + (21.5-20.9)^2 + (22.6-22.5)^2) / 3) = sqrt((0.04 + 0.36 + 0.01) / 3) = sqrt(0.41 / 3) = sqrt(0.1367) ≈ 0.37.

Consider the Actual Values Y and Forecast Values F Given