Use the Following to Answer Questions

question 1

Multiple Choice

Use the following to answer questions
A researcher is interested in forecasting the house price index in Country Z. The observed price index values from 1996 to 2000 are 101, 103 104, 107 and 111. The researcher uses two different forecasting models, A and B. The forecasts for the price index using Model A are 100.5, 102.4, 103.2, 106 and 111 whilst the forecast using Model B are 100.8, 102.2, 104, 104.2 and 112.1.
-What are the closest to the mean squared errors for model A and B's forecasts?

• A) 0.58 and 0.98, respectively
• B) 0.98 and 0.58, respectively
• C) 0.45 and 1.95, respectively
• D) 1.95 and 0.45, respectively

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Definitions:

F-ratio

A statistical measure used in the analysis of variance (ANOVA) to determine the ratio of variance between groups to the variance within groups.

Null Hypothesis

The default hypothesis that there is no significant difference or relationship between specified populations, any observed effect is due to sampling or experimental error.

GPAs

Grade point averages, numerical calculations that represent the average performance of a student across all completed courses.

F-ratio

A statistical measure that is used to compare the variance among group means in a sample.