For the Following Time Series Data, Using the Naïve Method

question 22

Essay

For the following time series data, using the naïve method (the most recent value as the forecast for the next period), answer the following questions. ​
a
Compute mean absolute error (MAE).
b.
Compute mean squared error (MSE).
c.
What is the forecast for period 7?

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Definitions:

Unsystematic Risk

A risk that affects, at most, a small number of assets. Also called unique or asset-specific risks.

Required Return

The expected gain or loss from an investment over a specified period, including both income and changes in asset value.

Capital Structure

The mixture of debt and equity financing a company uses to fund its operations and grow.

Debt-equity Ratio

A measure used to assess a company's financial leverage, calculated by dividing its total liabilities by its shareholder equity.