Consider the following to answer the question(s) below:
A company has developed a linear trend model to forecast monthly sales. The following data show the actual sales and the "fitted" sales for months 1-12.

-Based on these data, what is the mean square error (MSE) for the linear trend model?
A) 7976.167
B) 95714
C) 81.33
D) 976
E) 8701.273

Question

Consider the following to answer the question(s) below:
A company has developed a linear trend model to forecast monthly sales. The following data show the actual sales and the "fitted" sales for months 1-12.
 
-Based on these data, what is the mean square error (MSE) for the linear trend model?
A) 7976.167 
B) 95714 
C) 81.33 
D) 976 
E) 8701.273

Quizplus · Accepted Answer

The mean square error (MSE) is calculated as the average of the squares of the errors between the observed and predicted values. Based on the given options, 7976.167 is the correct MSE value for the linear trend model.

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