Consider the Actual Values Y and Forecast Values F Given

question 29

Multiple Choice

Consider the actual values Y and forecast values F given in the table below. $$\begin{array} { | c | c | c | } \hline \text { Time Period } & \mathrm { Y } & \mathrm { F } \\\hline 1 & 19.5 & 19.3 \\\hline 2 & 21.5 & 20.9 \\\hline 3 & 22.6 & 22.5 \\\hline\end{array}$$ Calculate the root mean squared error (RMSE) of the forecasts.

• A) 0.90
• B) 0.30
• C) 0.37
• D) 1.42

---

Definitions:

Purchasing Price

The price at which an item or service is bought, including taxes and additional fees.

Third Party

An entity involved in a transaction or situation which is neither the buyer nor the seller, but may have an interest or role.

Real Expenditures

Spending adjusted for inflation, which reflects the actual purchasing power of money on goods and services, providing a more accurate measure of economic activity.

Medicare

A federal program in the United States that provides health insurance to people who are 65 or older, and to younger people with certain disabilities.