Statistics – Total Error and Mean Squared Error

Use the following to answer the questions:

Week Revenue Forecasted Revenue
_________________________________________________________________

1 200 225
2 240 220
3 300 285
4 270 290
5 230 250
6 260 240
7 210 250
8 275 240

1] Compute the total error (sum of the error terms).

2] Compute the meansquared error (deviation).

Update:

Error = Revenue – Forecast Revenue. Total error is the sum of this column. [I have used the SUM function of Excel to get the total Error. Go to …

A Complete, Neat and Step-by-step Solution is provided in the attached Excel file.