Apex Mutual Fund invests primarily in technology stocks. The price of the fund s
ID: 3173825 • Letter: A
Question
Apex Mutual Fund invests primarily in technology stocks. The price of the fund share at the end of each month for the last 6 months of 2015 was forecasted and the forecast errors (actual-forecast) are given below. The value for the forecast accuracy measure of MSE is
Month
Actual Price (Yt)
Forecast Error (et)
July
18.50
-1.47
August
17.99
1.12
September
18.10
-.85
October
17.02
1.47
November
18.00
-1.07
December
18.88
.96
Select one:
a. 6.42
b. 1.39
c. 3.44
d. 1.16
e. None of the above
Month
Actual Price (Yt)
Forecast Error (et)
July
18.50
-1.47
August
17.99
1.12
September
18.10
-.85
October
17.02
1.47
November
18.00
-1.07
December
18.88
.96
Explanation / Answer
MSE=(8.3652)/6 =1.3942
Month Actual Price (Yt) Forecast Error (et) et ^2 July 18.5 -1.47 2.1609 August 17.99 1.12 1.2544 September 18.1 -0.85 0.7225 October 17.02 1.47 2.1609 November 18 -1.07 1.1449 December 18.88 0.96 0.9216 sum= 8.3652Related Questions
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