Question: 4. Measuring the Forecast Accuracy for Monthly Data. Consider the following time series data: Month 1 2 3 4 5 6 7 Value 24 13

4. Measuring the Forecast Accuracy for Monthly Data. Consider the following time series data:

Month 1 2 3 4 5 6 7 Value 24 13 20 12 19 23 15 Week 1 2 3 4 5 6 Value 18 13 16 11 17 14

a. Compute MSE using the most recent value 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. Which method appears to provide the better forecast?

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