Question: Table E7.3 presents 25 forecast errors for two different forecasting techniques applied to the same time series. Is it possible to combine the two forecasts

Table E7.3 presents 25 forecast errors for two different forecasting techniques applied to the same time series. Is it possible to combine the two forecasts to improve the forecast errors? What is the optimum weight for combining the forecasts? What is the variance of the combined forecast"?

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