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Compute mse using the average of last two values

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Reference no: EM132834169

1) Consider the following time series data.

Month Value

1 24

2 13

3 20

4 12

5 19

6 23

7 15

a. Compute MSE using the average of last two values as the forecast for the next period. What is the forecast for month 8?

b. Compute MSE using the average of all the data available as the forecast for the next period. What is the forecast for month 8?

c. Do you have any explanations for it?

Reference no: EM132834169

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