If the Errors Produced by a Forecasting Method for 3

question 21

Multiple Choice

If the errors produced by a forecasting method for 3 observations are -1,-2,and -6,then what is the mean squared error (deviation) ?

• A)9
• B)-9
• C)3
• D)13.67

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Definitions:

Utility Function

A mathematical representation that defines the level of satisfaction or utility that a consumer derives from consuming certain goods or services.

Consumption

The use of goods and services by households or individuals, leading to the satisfaction of their wants and needs.

Lottery

A method of distributing something (usually money or prizes) among a group of people by lot or by chance.

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, usually on an annual basis.