# Forecasting, Trends and Mean Square Error

Month 1993

January 1.45

February 1.80

March 2.03

April 1.99

May 2.32

June 2.20

July 2.13

August 2.43

September 1.90

October 2.13

November 2.56

December 4.16

Using the chart above I need to:

a. Forecast the month of December using a moving average of 3.

b. Calculate the Mean-Square Error (MSE).

© BrainMass Inc. brainmass.com October 9, 2019, 6:10 pm ad1c9bdddfhttps://brainmass.com/math/optimization/forecasting-trends-and-mean-square-error-80656

#### Solution Preview

Hello!

When forecasting using a moving average of 3, we use the following formula:

Forecast (t) = (1/3)*(Value (t-1) + Value (t-2) + Value ...

#### Solution Summary

Forecasting, Trends and Mean Square Error are investigated. The solution is detailed and well presented. The response received a rating of "5/5" from the student who originally posted the question.

$2.19