If the errors produced by a forecasting method for 3 observations are -1,-2 and -6,then what is the mean squared deviation (MSD)?
A)9
B)-9
C)3
D)13.67
E)15.99

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. For the errors -1, -2, and -6: (-1)^2 + (-2)^2 + (-6)^2 = 1 + 4 + 36 = 41. Dividing by the number of observations (3) gives 41 / 3 = 13.67.

If the Errors Produced by a Forecasting Method for 3