Chat with AI
An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin
Edition 13ISBN: 978-1439043271An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin
Edition 13ISBN: 978-1439043271 Exercise 13
Refer again to the gasoline sales time series data in Table 15.1.
a. Using a weight of 1/2 for the most recent observation, 1/2 for the second most recent, and 1/6 for third most recent, compute a three-week weighted moving average for the time series.
b. Compute the MSE for the weighted moving average in part (a). Do you prefer this weighted moving average to the unweighted moving average? Remember that the MSE: for the unweighted moving average is 10.22.
c. Suppose you are allowed to choose any weights as long as they sum to 1. Could you always find a set of weights that would make the MSE at least as small as for a weighted moving average than for an unweighted moving average? Why or why not?
a. Using a weight of 1/2 for the most recent observation, 1/2 for the second most recent, and 1/6 for third most recent, compute a three-week weighted moving average for the time series.
b. Compute the MSE for the weighted moving average in part (a). Do you prefer this weighted moving average to the unweighted moving average? Remember that the MSE: for the unweighted moving average is 10.22.
c. Suppose you are allowed to choose any weights as long as they sum to 1. Could you always find a set of weights that would make the MSE at least as small as for a weighted moving average than for an unweighted moving average? Why or why not?
Explanation
Verified
Verified
The values for the GS time series are gi...
An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
