If the errors produced by a forecasting method for 3 observations are +3,+3 and -3,then what is the mean squared deviation (MSD)?
A)9
B)0
C)3
D)-3
E)2

Question

Quizplus · Accepted Answer

The mean squared deviation (MSD) is calculated by squaring each error, summing those squared errors, and then dividing by the number of observations. Here, the squared errors are 9, 9, and 9. The sum is 27, and dividing by 3 observations gives an MSD of 9.

If the Errors Produced by a Forecasting Method for 3