Consider the following time series data.
Month
1
2
3
4
5
6
7
Value
21
29
25
30
26
25
30
(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?
The MSE is to be calculated again, but this time will be based
on the forecasts made using the average of the data. The given data
follow.
Month
1
2
3
4
5
6
7
Value
21
29
25
30
26
25
30
The forecast for month 2 will be the observed value from month
1. The forecast for month 3 will be the average of the observed
values from months 1 and 2. The forecast for month 4 will be the
average of the observed values from months 1, 2, and 3.
Complete the column of forecast values using this method.
Month
Value
Forecast Value
1
21
2
29
21
3
25
21 + 29
2
=
4
30
21 + 29 + 25
3
=
5
26
6
25
7
30
Find the forecast for month 8 using this pattern. (Round your
answer to two decimal places)