Two Forecasting Models Were Used to Predict the Future Values

question 92

Essay

Two forecasting models were used to predict the future values of a time series.The forecasts are shown below with the actual values: $$\begin{array} { l l l } \text { Forecast Model 1 } & \text { Forecast Model 2 } & \text { Actual Value } \\7.5 & 6.3 & 6.0 \\6.3 & 6.7 & 6.6 \\5.4 & 7.1 & 7.3 \\8.2 & 7.5 & 9.4\end{array}$$
-Calculate the mean squared deviation (MSD)for Model 2

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Definitions:

Population

Total number of possible units or elements that could potentially be included in a study.

Statistics

Branch of mathematics dealing with the collection, analysis, interpretation, and presentation of masses of numerical data.

Null Hypothesis

A formal statement that assumes no association or effect between variables, serving as the basis for statistical significance testing.

Hypothesis Testing

A statistical method used to determine if there is enough evidence in a sample of data to infer that a certain condition holds true for the entire population.