Question: What is the MSE? Using QM for Windows, the forecast is and the MSE = ( ignoring the first error ) . This MSE is
What is the MSE?
Using QM for Windows, the forecast is and the MSE ignoring the first error
This MSE is higher than the MSE found using a trend line, so the trend line provides better forecasts. However, other values for the two smoothing constants might result in better forecasts and a lower MSE.
With a smoothing constant of the forecast for is with MSEignoring the first error
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