The following table shows the predicted and the actual sales of a firm in the quarters of a year.
Table 4-1
$\begin{array}{l}
\begin{array} { | c | c | c | }
\hline&\text { Predicted Sales}&\text { Actual Sales }\
\text { Quarter } & \text { (in dollars) } & \text { (in dollars) } \
\hline 1 & 20 & 19 \
\hline 2 & 22 & 20 \
\hline 3 & 24 & 21 \
\hline 4 & 28 & 26 \
\hline
\end{array}
\end{array}$
-Calculate the sum of squared errors of the observations from Table 4-1.
A) 20
B) 34
C) 18
D) 22
E) 15

Question

The following table shows the predicted and the actual sales of a firm in the quarters of a year.
Table 4-1
 $\begin{array}{l}
\begin{array} { | c | c | c | } 
\hline&\text { Predicted Sales}&\text { Actual Sales }\
 \text { Quarter } & \text { (in dollars) } & \text { (in dollars) } \
\hline 1 & 20 & 19 \
\hline 2 & 22 & 20 \
\hline 3 & 24 & 21 \
\hline 4 & 28 & 26 \
\hline
\end{array}
\end{array}$
-Calculate the sum of squared errors of the observations from Table 4-1.
A) 20
B) 34
C) 18
D) 22
E) 15

Quizplus · Accepted Answer

The sum of squared errors (SSE) is calculated by taking the difference between the predicted and actual sales for each quarter, squaring that difference, and then summing those squared differences across all quarters. For each quarter: Q1: $(20-19)^2 = 1$, Q2: $(22-20)^2 = 4$, Q3: $(24-21)^2 = 9$, Q4: $(28-26)^2 = 4$. Adding these together gives $1 + 4 + 9 + 4 = 18$.

The Following Table Shows the Predicted and the Actual Sales