1)

Given forecast errors of -5, 4, 7, and -2, what is the mean squared error?

• A. 16
• B. 14.3
• C. 22.5
• D. 23.5
• E. 15.5

2.

Given forecast errors of -5, 4, 7, and -2, what is the mean absolute deviation?

• A. 3.5
• B. 1.6
• C. 1.3
• D. 5.5
• E. 4.5

Fred started a bike store and wants to start forecasting his future sales. He decides to use a weighted moving average to estimate sales of future months. Here are the previous month's sales in units: March 5,200 April 5,600 May 6,200 June 6,500 July 6,000 By weighing the previous month with a value of 3, the second last month with 2, and the third last month with a value of 1, what is the estimated value for sales for August? In addition, what would the estimated value of sales have been for July using this formula?

• A. Prediction for August is 5,800 and for July would have been 6,050
• B. Prediction for August is 6,200 and for July would have been 6,050
• C. Prediction for August is 6,100 and for July would have been 6,250
• D. Prediction for August is 6,000 and for July would have been 6,150
• E. Prediction for August is 6,200 and for July would have been 6,250

4.

The last four months of actual sales were 8, 10, 15, and 9 units. The last four forecasts were 7, 6, 13, and 15 units. The Mean Squared Error (MSE) is

• A. 9.5.
• B. 8.75.
• C. 0.
• D. 12.25.
• E. 3.