Solved

The Following Data Shows the Quarterly Profit (In Thousands of Dollars)

Question 29

Essay

The following data shows the quarterly profit (in thousands of dollars) made by a particular company in the past 3 years.
The following data shows the quarterly profit (in thousands of dollars) made by a particular company in the past 3 years. a. Use α = 0.3 to compute the exponential smoothing values for the time series. Compute MSE and the forecast of profit (in $1000s) for the next quarter. b. Compare the three-period moving average forecast with the exponential smoothing forecast using α = 0.3. Which appears to provide the better forecast based on MSE? a. Use α = 0.3 to compute the exponential smoothing values for the time series. Compute MSE and the forecast of profit (in $1000s) for the next quarter.
b. Compare the three-period moving average forecast with the exponential smoothing forecast using α = 0.3. Which appears to provide the better forecast based on MSE?

Correct Answer:

verifed

Verified

a. Smoothing constant α = 0.3
blured image
MSE = 2...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q24: An exponential trend pattern is appropriate when:<br>A)

Q25: Using a large value for order k

Q26: A time series with a seasonal pattern

Q27: Which of the following data patterns best

Q28: The following times series shows the demand

Q30: The measures of accuracy of the forecasts:<br>A)

Q31: Causal forecasting:<br>A) does not depend upon historical

Q32: Consider the following time series data:<br> <img

Q33: The monthly sales revenue (in hundreds of

Q34: If a time series plot exhibits a