In forecasting methods, the mean square error (MSE) is computed by dividing the sum of squared residuals (errors) by the number of observations n for which the residuals are available.

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Quizplus · Accepted Answer

This is correct. The MSE is calculated by dividing the sum of squared residuals by the number of observations. The formula is MSE = (1/n) * sum[(actual value - predicted value)^2].

In Forecasting Methods, the Mean Square Error (MSE) Is Computed