Compute the exponential smoothing forecasts

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Reference no: EM132875127

Question

Consider the following time series data

Month 1 2 3 4 5 6

Value 18 13 16 11 17 14

a. Construct a times series plot. what type of pattern exists within the data?

b. Delelop a three week moving average forecast for this time series. compute MSE and a forecast for week 7.

c. Use a=.2 to compute the exponential smoothing forecasts for the time series compute MSE and a forecast for for week 7.

d. Compare the three week moving average appraoch with the exponential smoothing approach using a= .2. Which appears to porvide more accurate forecasts based on MSE

e. Use a smoothing constant of a=.4 to compute the exponential smoothing forecasts. Does a smoothing constant of .2 or .4 appear to provide more accurate forecasts based on MSE. explain

Reference no: EM132875127

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