Answer:
The forecast error in period 2 is 2.5
Step-by-step explanation:
The forecasted value of the time series variable for period 2 = 22.5
The actual value observed for period 2 = 25
Forecast error = Actual value - Forecasted value
Actual value = 25
Forcasted value = 22.5
Forecast error in period 2 = [tex]25 - 22.5[/tex]
Forecast error in period 2= [tex]2.5[/tex]
Hence the forecast error in period 2 is 2.5
