Explore BrainMass

Weighted average and mean square error

Will a k-period weighted average produce a lower mean square error (MSE) when making predictions than a weighted average derived from k minus 1 periods? If so, why or why not?

Solution Summary

This solution is provided in 92 words in an attached .doc file. It provides the equation for mean square error, including that in relation to a Fourier series. This is explained and it is shown how k is related to the size of mean square error.