Given forecast errors of 5, 0, −4, and 3, what is the mean square error?
A) 3
B) 4
C) 12
D) 12.5
E) 50

Question

Quizplus · Accepted Answer

1. Compute the squared errors: 5^2 = 25, 0^2 = 0, (-4)^2 = 16, and 3^2 = 9.
2. Sum the squared errors: 25 + 0 + 16 + 9 = 50.
3. Divide the sum of squared errors by the number of observations to get the mean squared error: 50/4 = 12.5.
Therefore, the mean squared error is 12.5. The best choice is D.

Given Forecast Errors of 5, 0, −4, and 3, What