Question: The small dataset below consists of 8 datapoints which represent the previous two years in sales per quarter. The averaging forecasting method, without seasonality is
The small dataset below consists of 8 datapoints which represent the previous two years in sales per quarter. The averaging forecasting method, without seasonality is used to forecast the next periods sales.
| Quarter | Sales | Forecast |
| Year 1 Quarter 1 | 21,000 | 23,000 |
| Year 1 Quarter 2 | 22,000 | 23,000 |
| Year 1 Quarter 3 | 20,000 | 23,000 |
| Year 1 Quarter 4 | 25,000 | 23,000 |
| Year 2 Quarter 1 | 23,000 | 23,000 |
| Year 2 Quarter 2 | 25,000 | 23,000 |
| Year 2 Quarter 3 | 22,000 | 23,000 |
| Year 2 Quarter 4 | 26,000 | 23,000 |
Determine the expected MSE
| 3,062,500 |
| 23,000 |
| 1,750 |
| 4,000,000 |
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