A Time Series Analysis Was Performed to Determine the Number

question 52

Multiple Choice

A time series analysis was performed to determine the number of new online customers that joined the 'Jelly of the Month Club'.The actual number of new customers, the forecast values and the error terms are presented in the following table.The mean error (ME) for this forecast is ___________. $\begin{array}{|r|r|r|r|}\hline \text { Monthh } & \text { Actual } & \text { Forecast} & \text { Error } \\\hline \text { July } &4 & & \\\hline \text { Aug } & 6 & 5 &-1 \\\hline \text { Sept } & 3 & 6 &3 \\\hline \text { Oct } & 9 & 8& -1 \\\hline \text { Nov } &8 &9& 1 \\\hline\end{array}$

• A)-0.50
• B)0.50
• C)1.50
• D)7.00
• E)3.00

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Definitions:

Division I

Denotes the highest level of collegiate athletic competitions in the United States, governed by the National Collegiate Athletic Association (NCAA).

Error of Estimation

The difference between an estimated value and the true value, often used in statistics to assess the accuracy of estimations.

Estimated Parameter

In statistics, a value derived from a sample that estimates a population parameter.

Estimate

An approximation or prediction of a value based on sample data.