Calculate measurement error using mse and mad


Discussion Post

The figures below indicate the number of mergers that took place in the savings and loan industry over a 12-year period.

Year     Mergers      Year     Mergers
2000     46             2006         83
2001     46             2007         123
2002     62             2008         97
2003     45             2009         186
2004     64             2010         225
2005     61             2011         240

Task

• Calculate a 5-year moving average to forecast the number of mergers for 2012.

• Use the moving average technique to determine the forecast for 2005 to 2011. Calculate measurement error using MSE and MAD.

• Calculate a 5-year weighted moving average to forecast the number of mergers for 2012. Use weights of 0.10, 0.15, 0.20, 0.25, and 0.30, with the most recent year weighted being the largest.

• Use regression analysis to forecast the number of mergers in 2012.

The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.

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Financial Management: Calculate measurement error using mse and mad
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