a A time series with forecast values is presented n the foll

a.) A time series with forecast values is presented n the following table. The mean square error (MSE) for this forecast is _______ . b.) The mean absolute deviation (MAD) for this forecast is ____________.

Solution

a) MSE

= (sigma ( A - F)^2) / n

= ( (5-0)^2 + (11-5)^2 + (13-6.8)^2 + (6-8.66)^2 + ( 5-7.862)^2) / 5

= 22.94 Answer

b) MAD

= (sigma ( A - F)) / n

= ( (5-0) + (11-5) + (13-6.8) + (6-8.66) + ( 5-7.862)) / 5

= 2.34 Answer