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Consider the Following Time Series Data

Question 18

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Consider the following time series data:
Consider the following time series data: a. Use α = 0.2 to compute the exponential smoothing values for the time series. Compute MSE and a forecast for year 11. b. Use trial and error to find a value of the exponential smoothing coefficient α that results in a smaller MSE than what you calculated for α = 0.2. c. Compute the forecast for year 11 using the smoothing coefficient α selected using trial error. a. Use α = 0.2 to compute the exponential smoothing values for the time series. Compute MSE and a forecast for year 11.
b. Use trial and error to find a value of the exponential smoothing coefficient α that results in a smaller MSE than what you calculated for α = 0.2.
c. Compute the forecast for year 11 using the smoothing coefficient α selected using trial error.

Correct Answer:

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a. Smoothing constant α = 0.2
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MSE = 1...

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