Consider the Following to Answer the Question(s) Below

question 18

Multiple Choice

Consider the following to answer the question(s) below:
A company has developed a linear trend model to forecast monthly sales. The following data show the actual sales and the "fitted" sales for months 1-12.

-Based on these data, what is the mean square error (MSE) for the linear trend model?

• A) 7976.167
• B) 95714
• C) 81.33
• D) 976
• E) none of the above

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Definitions:

Marginal Costs

Marginal costs represent the change in total production cost that arises when the quantity produced is incremented by one unit, essentially the cost of producing one additional unit of a good.

Marginal Productivity

Marginal productivity is the additional output that is produced by using one more unit of a certain input, assuming that all other inputs remain constant.

Total Output

The complete quantity of goods or services produced by a company, sector, or economy within a given period.

Extra Inputs

Additional resources or factors of production, such as labor or materials, that are used to increase output or efficiency.