Compute the mean squared error for the forecast


Solve the below problem:

Q: Income at the architectural firm Sprigging and Yuen's for the period February to July was as follows:

Month               Feb   Mar  Apr   May  June  July
Income($000's)  75.0  71.5  66.4  72.3   73.5  74.0

Assume that the initial forecast for February is 70.0 (in $ thousands) and the initial trend adjustment is 0. The smoothing constants selected are a = 0.2 and beta = 0.9. Using trend-adjusted exponential smoothing, the forecast for the law firm's August income is thousand dollars (round your response to two decimal places). The mean squared error (MSE) for the forecast developed using trend-adjusted exponential smoothing is (thousand dollars)^(round your response to two decimal places).

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Operation Management: Compute the mean squared error for the forecast
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